Cipla's Q1 PAT grows 24% to Rs 715 crore riding on domestic sales

The company posted a 27% YoY increase in income from operations, at Rs 5,504 cr. Ebitda grew 28% to Rs 1,346 cr with a resulting Ebitda margin of 24.5%

Mumbai-headquartered Cipla posted a 24 per cent growth in profit after tax (PAT) to Rs 715 crore for the June quarter riding on strong revenue growth in the India business as well as in the active pharmaceutical ingredients (API) business.

The company posted a 27 per cent YoY increase in income from operations, at Rs 5,504 crore during the quarter. The Ebitda grew by 28 per cent to Rs 1,346 crore with a resulting Ebitda margin of 24.5 per cent.

The India business grew 68 per cent to Rs 2,710 crore, led by chronic therapies and Covid-19 portfolio. The firm said the branded prescription business did well, driven by volume growth in core therapies, and new launched in its Covid portfolio through the second wave.

Cipla's trade generics business too reported steady order flow and benefitted from demand for Covid ancillary products.

Commenting on the performance, Umang Vohra, MD and Global CEO, Cipla said, “I am pleased to see the robust demand-led traction in core therapies across our branded markets and continued cost control leading to 27 per cent revenue growth and 24.5 per cent EBITDA margin for the quarter. In India, we maintained our market beating performance as core therapies responded to demand triggers along with support from Covid portfolio during the second wave.”

The North America business, however, posted a muted 5 per cent growth to $141 million during the quarter aided by the success of its respiratory drug albuterol. In South Africa, Cipla's sales in the private market climbed 7.6 per cent YoY as against market growth of 5.1 per cent.

The API business grew 69 per cent YoY in dollar terms. This includes a one-time profit share on the commercial supply of an API to a partner, the company said.