Cipla Q1 results: Net profit rises 45% YoY to ₹996 crore; US business posts highest ever revenue of $222 million

Cipla reported a 45.1% rise in its consolidated net profit for the quarter ended June 2023 at ₹995.7 crore as compared to ₹696.4 crore in the corresponding quarter of the last year.

The drug major’s revenue in Q1FY24 increased 17.7% to ₹6,328.9 crore from ₹5,375.2 crore, YoY, driven by performance in India, US & South Africa.

The company’s US business reported the highest ever revenue of $ 222 million, registering a growth of 43% YoY growth driven by robust momentum in differentiated portfolios.

“Our pipeline and execution have been a substantial driver to this growth. Key asset of Lanreotide has improved its market share to 18%. Focus continues on limited competition launches,” Cipla said in a statement.

South Africa Private Market business grew at 13% YoY in local currency terms backed by double digit growth in both prescription and OTC business, the company added.

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Earnings before interest, taxes, depreciation and amortization (EBITDA) during the quarter under review grew 30.7% to ₹1,493.9 crore from ₹1,143.4 crore, YoY. EBITDA margin also improved by 230 basis points (bps) to 23.6% from 21.3%, YoY.

Cipla’s R&D investments rose 27% YoY to ₹349 crore or 5.5% of sales, driven by continued progress of clinical trials on key pipeline assets and other developmental efforts.

One India business grew 12% YoY across branded prescription, trade generics and consumer health.

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Branded prescription business grew at 11%, while the Trade generic business saw a growth of 8%, YoY, supported by traction in big brands.

Cipla’s Health franchise grew by 16% with margins reaching closer to mid-teens for the quarter. Big brands of Cipla Health scaled further by posting double digit growth in revenues.

On Wednesday, Cipla share price ended 1.37% higher at ₹1,068.70 apiece on the BSE.

Read all Q1 Results here