New Delhi: Pharmaceutical major Cipla Ltd on Friday reported a better-than-expected consolidated net profit of ₹939.04 crore for the March quarter, up 78.64% year-on-year due to higher demand in key markets.
The company's consolidated revenue during the quarter rose 7.4% YoY to ₹6,163.24 crore, according to a filing with the exchanges.
While the net profit beat estimates given by Bloomberg’s poll of analysts, the revenue was below expectation. Analysts had expected the company to post a revenue and profit after tax of ₹6,234.30 crore and ₹867.93 crore, respectively.
Following the earnings, shares of Cipla fell 1.4% on the National Stock Exchange to close at ₹1,340.00 apiece on Friday as the revenue disappointed market investors. The shares hit a low of ₹1,317.25 intraday. The benchmark index Nifty, meanwhile, closed 0.4% higher today.
Earnings before interest, taxes, depreciation, and amortization, or Ebitda, during the quarter under review grew 13% to ₹1,316 crore with an operating margin of 21.4%.
"This was backed by One-India revenue breaching ₹10,000 crore, North America revenue surpassing $900 million and South Africa reaching top spot in the prescription market, with all three businesses growing in double digits over last year," said Umang Vohra, MD and Global CEO, Cipla Ltd in a conference call.
“I believe going ahead, our revenue estimates will be higher globally along with higher market growth. I think overall, we are looking at somewhere around 25% of Ebitda going ahead," he added.
The company expects to launch new products, including an obesity drug which has a huge market. “We have identified obesity as a big area. We are hoping for the drug launch in India, but it will be timed with the patent expiries,” he added.
"As we enter into FY25, our focus will be on our priorities of market-leading growth in our key markets, growing big brands bigger, investing in the future pipeline as well as focusing on resolutions on the regulatory front,” added Vohra.
The company had a net cash position of ₹7,708 crore as of 31 March. Its total debt was at ₹559 crore at the end of the March quarter.
Geographically, the One India business grew a muted 7% across branded prescription, trade generics, and consumer health.
Branded prescription business continued to outpace market growth, backed by a chronic portfolio which posted a healthy 10% growth during the quarter.
“The growth of our consumer health portfolio was adversely impacted due to soft seasonal demand,” the company said.
The company's board has recommended a dividend of ₹13 per share of face value of ₹2 each for FY24.
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.