Cipla Q4 PAT dips 12% to Rs 362 cr owing to Covid inventory impact

For the full fiscal, Cipla has posted a 4.7% jump in net profit to Rs 2,517 crore, revenue and Ebitda rose 13.6% and 6.4% respectively

Mumbai-based Cipla posted a 12.4 per cent dip in net profit for the fourth quarter of the fiscal 2021-22 to Rs 362 crore due to impact of impairments. The revenue for the quarter grew 14.2 percent to Rs 5260 crore, and the Ebitda dipped 4.2 percent to Rs 763 crore.

For the full fiscal Cipla has posted a 4.7 per cent jump in net profits to Rs 2,517 crore, while its revenue and Ebitda rose 13.6 per cent and 6.4 percent respectively to Rs 21,763 crore and Rs 4,578 crore.

If one excludes impact of one-time Covid-19 inventory and other charges of Rs 200 crore in Q4, the adjusted Ebitda margin for Q4FY22 comes to 18 percent (Ebitda Rs 960 crore) and for the full year it is 22 per cent (Ebitda Rs 4,775 crore).

Cipla’s India business posted strong growth of 21 percent across branded prescription, trade generics and consumer health over last year, and 15 percent YoY adjusted for Covid-19 portfolio. The US business reported $160 million in revenue and a 17 per cent YoY growth thanks to traction in the respiratory assets and the peptide assets.

Umang Vohra, MD and Global CEO, Cipla said that seasonality impacted overall business mix. “Our One-India business continued the double digit trajectory during the quarter. We crossed the $1 bn milestone in our domestic branded prescription business driven by the sustained growth across our acute and chronic portfolio.”

Vohra further added that the established respiratory franchise and contribution from peptides has strengthened their US run rate to $160 mn.

“Adjusting for covid linked and other one-time charges, our core operating profitability continues to be strongly underpinned by the strength of our business fundamentals. We continue to respond to the challenging input cost environment with cost optimization and mix management while maintaining high serviceability. We are excited about the upcoming complex launches in H2FY23 which will further strengthen overall business and profitability trajectory,” he said.

The firm’s API (bulk drug) business revenues have dipped by 38.7 percent  due to stock-up by customers and one-time profit share on API supply.