Cipla Q3 PAT rises 6% to Rs 351 cr

On a consolidated basis, Cipla's net profit gained 5.66% to Rs 351.03 crore in Q3 December 2019 (Q3 FY20) as against Rs 332.20 crore reported in Q3 December 2018 (Q3 FY19).

Net sales advanced 8.40% year-on-year (YoY) to Rs 4,234.55 crore in Q3 FY20. Cipla declared its Q3 earnings at the fag end of trading hours today, 5 February 2020.

Profit before Tax jumped 12.81% to Rs 506.40 crore in Q3 FY20 as compared to Rs 448.88 crore posted in Q3 FY19. Total tax expenses, for the quarter, jumped 21.59% to Rs 152.82 crore YoY.

EBITDA grew 5.27% to Rs 758 crore in Q3 FY20 from Rs 720 crore in Q3 FY19. The EBITDA margin stood at 17.3% in Q3 FY20 as against 18% in Q3 FY19. The profit margin was at 8% in Q3 FY20 as compared to 8.3% in Q3 FY19.

In Indian business segment, the company saw strong growth across both prescription and trade generic businesses. The overall business revenues grew 13% YoY, revenues from prescription business improved by 14% YoY while the revenues from trade generics business recorded growth of 7% YoY.

US business revenues jumped 13% to $133 million YoY. The investments in Research & Development (R&D) stood at Rs 308 crore (or 7% of sales) during the quarter.

The firm's total debt stood at Rs 3,552 crore as on 31 December 2019 as against Rs 3,557 crore as on 30 September 2019.

Total cash & cash equivalents (including current investment and excluding unclaimed dividend balances) stood at Rs 2,957 crore as on 31 December 2019 as compared to Rs 2,217 crore as on 30 September 2019.

Commenting on the Q3 performance, Umang Vohra, the managing director and global CEO of Cipla, has stated that, I am happy to report that we have had yet another good quarter - India business continued its momentum with strong double digit growth in the prescription business; growth coming back in the trade generics business, South Africa's private market franchise continued to outperform the market significantly and the US generics business retained a healthy share in key assets despite multiple competitive entries. Under our One India vision, we have integrated our formidable prescription & trade generics franchise along with our progressive wellness portfolio of Cipla Health. We have already taken initial actions on portfolio and our leadership structure to leverage the synergies which in the coming quarters will evolve significantly.

Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and deepening portfolio in our home markets of India, South Africa, North America, and key regulated and emerging markets.

Shares of Cipla fell 0.40% to end at Rs 446.80. The scrip hovered in the range of Rs 437.50 to Rs 458.50 in intraday.

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