Cipla gains on good Q2 performance

Cipla advanced 1.36% to Rs 473.95 after the consolidated net profit rose by 25% to Rs 471 crore on 10% rise in total revenue from operations to Rs 4,396 crore in Q2 September 2019 over Q2 September 2018.

EBITDA jumped by 21% to Rs 909 crore in Q2 September 2019 as compared to Rs 753 crore in corresponding quarter in the last fiscal. Revenue and EBITDA growth were aided by growth across key businesses.

Revenues from the pharmaceuticals segment rose 9.48% to Rs 4,357.16 crore while that from new ventures stood at Rs 46.99 crore, up by 22.21% in Q2 September 2019 over Q2 September 2018.

In India, both prescription and trade generic businesses grew strongly to deliver 29% sequential growth in the quarter; prescription business grew 13% year on year and the trade business grew by 61% sequentially.

US business delivers $135 million to grow at 25% on a year on year basis.

Overall South Africa business grew strongly at 12% on a year on year basis in local currency; private market business recovered strongly from Q1 to drive ~13% year on year growth.

R&D investments at Rs 295 crore in Q2 September 2019, represented 7% of the total sales.

The company continued to focus on maintaining balance sheet heath and it repaid a loan of $110 million during the quarter, one year ahead of schedule.

Umang Vohra MD and global CEO, Cipla, said, Our home markets continued to bode well - India Business recorded robust performance in trade generics and across all key therapies in branded business while in South Africa, the private market business outpaced the market significantly.We strengthened our anti-microbial stewardship with the commercialisation of Zemdri in the US.

The stock has traded in the range of Rs 464.55 and Rs 487.75 so far during the day. The trading volume for the stock at 6.44 lakh shares, was 11.1 times the two week average of 58,000 shares.

Cipla is a global pharmaceutical company focused on complex generics, and deepening of portfolio in markets of India, South Africa, North America, and key regulated and emerging markets. The company's strengths lay in the respiratory, anti-retroviral, urology, cardiology, anti-infective and central nervous system (CNS) segments.

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