Consolidated revenue from operations grew a meagre 6% on year to Rs 5,810 crore. It also missed analysts’ estimate of Rs 6,100 crore.
Operating profit, calculated as earnings before interest, taxes, depreciation and amortization (EBITDA) grew 14.3% on year to Rs 1,407.56 crore, while the margin expanded by 176 basis points to 24.23%.
A sharp fall in input costs contributed to the improvement in operational performance. Raw material costs dropped by 15% on year to Rs 1,299.04 crore.
Higher finance cost and a rise in the tax outgo weighed on the bottomline. The net tax outgo for the quarter was Rs 410 crore compared to Rs 295.2 crore a year ago.
Cipla’s standalone net profit for the quarter fell 7.2% on year to Rs 678.52 crore, while revenue grew a marginal 0.4% to Rs 3,899.45 crore.
spent Rs 363 crore towards research and development in the reported quarter or 6.2% of its sales. This is 39% higher on a YoY basis, driven by the ongoing clinical trials on a respiratory asset and other developmental efforts continuing including biosimilars. “Our reported operating profitability of 24.2% reflects our focused efforts on navigating external headwinds and continued higher R&D spends stemming from ongoing respiratory trials and initiation of biosimilar programs,” said Umang Vohra, MD and Global CEO of the drugmaker.
The One-India business saw robust double-digit growth in core portfolio across therapies and business segments. Excluding the COVID portfolio, growth was 11% YoY. In the branded prescription business, Cipla for the 7th consecutive quarter, saw market-beating growth in core portfolio adjusted for COVID products.
There was sustained momentum across respiratory, cardiac, and anti-diabetic drugs in the core portfolio. Cipla saw healthy market share across chronic therapies in the quarter.
In South Africa, Cipla clocked a 9.3% growth in the prescription drug portfolio against the market growth of 3.7%. The overall growth in South Africa was 8,5% compared with market growth of 2.3%.
India remains the mainstay business for Cipla, as the region contributed 44% to the consolidated revenue, followed by North America at 28%.
The total debt as on December 31, stood at Rs 1,042 crore, compared with Rs 1,068 crore a quarter ago.
The dismal numbers from the drugmaker weighed on the stock, which extended the day’s losses and hit an over 4-month low of Rs 1,021. The shares were trading 3.2% lower on the National Stock Exchange at Rs 1,028.45.
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