On Monday, the company reported a 31.8% year-on-year (YoY) jump in its October-December quarter consolidated net profit at Rs 1,056 crore. It was Rs 801 crore in the year-ago period.
“Our topline growth for the quarter was at an impressive 14% YoY with strong EBITDA margins at 26.3%. One India business grew at a healthy 12% YoY backed by strong performance across Branded Prescription, Trade Generics and Consumer Health,” said Umang Vohra, MD and Global CEO of Cipla.
“In North America, we continue to scale newer peaks by posting highest ever quarterly revenue yet again at $ 230 Mn, supported by positive traction in key assets and base business. Our South Africa business further extended its momentum from last quarter by growing at 15% in local currency terms driven by strong execution across prescription, OTC and tender,” Vohra said.
The North American business scaled a new peak with quarterly revenue of $230 million, 18% YoY growth, supported by continuing momentum in key assets and robust demand in base business along with some year-end buying.
In South Africa, Cipla continued its growth journey, by posting a solid 15% YoY increase in revenue in local currency terms. This performance was supported by positive traction in prescription, OTC and tender.
At the end of the December quarter, Cipla’s R&D investments stood at Rs 400 crore or 6.1% of sales, higher by 10% YoY driven by product filings and developmental efforts.The company is yet to do its earnings conference call which is scheduled on January 25, Thursday and most top brokerages are likely to come out with their reviews following the event.
However, Nuvama has recommended a buy on the stock for a target price of Rs 1,265 with a caveat that it will revisit its rating and target post the conference call.
Cipla’s Q3FY24 revenue/EBITDA/PAT beat consensus estimates by 1%/10%/17%, the brokerage said in a note.
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