Cipla posts net profit of Rs 665 cr in Q2, income from ops grows 15%

The company's prescription biz grew 14% YoY supported by continued traction in the Covid portfolio

Mumbai-headquartered Cipla posted a 41 per cent rise in profit after tax for the September quarter riding on strong growth in the Indian market. Income from operations during the quarter grew 15 per cent to Rs 5,038 crore.

Cipla posted a net profit of Rs 665 crore. Earnings before income tax, depreciation and amortisation (Ebitda) came in at Rs 1,177 crore, up 29 per cent year on year (YoY).

The company's India business grew 17 per cent YoY as the prescription as well as the trade generics business did well. The prescription business grew 14 per cent YoY supported by continued traction in the Covid portfolio - remdesivir (Cipremi), tocilizumab (Actemra licensed from Roche) and ciplenza (favipiravir). During the quarter, 150,000 patients were supplied with these off-label drugs. Around 95,000 patients were serviced through the 24X7 helpline that the company runs for the Covid-19 drugs. These drugs are off label therapies which means they have emergency use authorisation for treating Covid-19 patients.

 

Cipla's trade generics business too, did well along with the consumer health division, driving the overall growth in the domestic market. The company has adopted a One India strategy to leverage greater synergy between prescription, trade generics and over the counter (OTC) consumer brands.

Its two other important markets - South Africa (where it is the third largest pharma firm with a private market share of 7 per cent), and the US posted growth during the quarter.

While the South Africa business grew 14 per cent YoY (in local currency terms), the US market posted a 4 per cent YoY growth. Cipla launched new products like albuterol and esomeprazole oral suspencsion and DHE nasal spray in the US market.

The company noted that it is working with the  USFDA to comprehensively address observations received in Goa.