Cipla shares jump 7% after Q3 earnings, hit new record high | Mint
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Business News/ Markets / Stock Markets/  Cipla shares jump 7% after Q3 earnings, hit new record high
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Cipla shares jump 7% after Q3 earnings, hit new record high

Cipla shares surge 7% to hit all-time high of ₹1,409 apiece after reporting better-than-expected Q3FY24 earnings.

The operating profit came in at ₹1,748 crore, an increase of 24.2% YoY, while the EBITDA margin expanded by over 200 basis points YoY to 26.3%. (Mint)Premium
The operating profit came in at 1,748 crore, an increase of 24.2% YoY, while the EBITDA margin expanded by over 200 basis points YoY to 26.3%. (Mint)

Following the better-than-expected Q3FY24 earnings, shares of Cipla, one of the leading pharmaceutical companies in India, spiked 7% to hit a new all-time high of 1,409 apiece in early deals on Tuesday.

The company on Monday reported a 32.7% YoY jump in its consolidated net profit at 1,056 crore, driven by strong growth across geographies. The generic drugmaker's total revenue from operations for Q3 FY24 saw a marginal dip at 6,603 crore as compared to 6,678 crore in the preceding quarter (Q2 FY24), but up 13.66% from 5,810.09 crore in the corresponding period a year ago.

Also Read: India overtakes Hong Kong as world’s fourth-largest stock market

Revenue from Indian business surged by 12% in Q3, while US business reported the highest ever quarterly revenue of $230 million at 18%. YoY growth is supported by continuing momentum in key assets and robust demand in base business, along with some year-end buying.

South Africa 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, the company said in its Q3 earnings report.

The company has a robust net cash position of 7,143 crore post-repayment of ZAR 720 million term loan in South Africa. The operating profit came in at 1,748 crore, an increase of 24.2% YoY, while the EBITDA margin expanded by over 200 basis points YoY to 26.3%. 

Also Read: ICICI Bank share price jumps over 5% to 52-week high after Q3 results; should you buy?

"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. Our focus continues on expansion in chronic therapies, growing big brands, global wellness, and developing our R&D pipeline in respiratory and peptides. We will continue to focus on driving profitable growth across businesses," said Umang Vohra, MD and Global CEO of Cipla.

At 09:45 am, the stock was trading with a gain of 6.28% at 1,398 apiece. 

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.

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Published: 23 Jan 2024, 09:33 AM IST
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