Cipla records 41% jump in Q2 PAT

The drug major reported 41.2% jump in consolidated net profit to Rs 665.43 crore on 16.6% increase in net sales to Rs 4,972.58 crore in Q2 FY21 over Q2 FY20.

EBITDA rose by 29% to Rs 1,177 crore in the second quarter from Rs 909 in the same period last year. EBITDA margin was at 23.4% in Q2 FY21 as compared to 20.7% in Q2 FY20.

Profit before tax in Q2 September 2020 stood at Rs 925.65 crore, up by 35.9% from Rs 680.99 crore in Q2 September 2019. Current tax expenses increased 80.6% year-on-year (YoY) to Rs 332.84 crore during the quarter.

The company's cash and cash equivalents were at Rs 3,623 crore as on 30 September 2020 as against Rs 3,256 crore as on 30 September 2019.

Cipla's India business revenue grew by 17% YoY with strong growth across the three businesses. The company's prescription business grew 14% YoY basis supported by continued traction in the COVID-19 portfolio, chronic therapies and modest recovery in the hospital portfolio which offset subdued demand in the acute business.

Trade generics business continued its healthy growth on strong demand and high order flow across all regions. In the consumer health business, the drug maker witnessed strong demand in consumer brands post transfer from trade generics business.

The company said that in South Africa, continued momentum across private and tender businesses drove growth of 14% on a YoY basis in local currency, as private and OTC business continued to outpace the market.

The company's US business reported $141 million in revenues led by continued traction in new launches, it added.

Cipla further said that the European operations reported 24% growth on a YoY basis in dollar terms led by strong performance in key DTM markets. The emerging market business maintained scale in dollar terms with continued growth across all regions; Remdesivir supplies commenced in multiple emerging markets," the company added.

Umang Vohra, MD and Global CEO, Cipla, said: Pleased to see yet another quarter of strong performance across our businesses with overall revenues growing 15% on YoY basis. The performance reflects strong demand backed by resilient operations management. The quarter also saw sustained focus on cost optimization which helped deliver an EBITDA margin of over 23%. We continued to deliver on our promise of Caring for Life by being at the forefront in combatting COVID-19 through a spectrum of offerings, which also helped us deliver market beating performance in India. Our businesses in South Africa, US and other international markets maintained the growth momentum with strong traction in the base business and new launches. In line with our aspiration of being global lung leaders, we will continue our investment towards expanding our global respiratory franchise

Cipla is a global pharmaceutical company focused on complex generics, and deepening its portfolio in the markets of India, South Africa, North America, and key regulated and emerging markets.

The scrip shed 0.50% to Rs 789.90 on Friday. It traded in the range of 786.60 and 801.85 during the day.

On a year-to-date (YTD) basis, the stock has added 65.10% while the benchmark S&P BSE Sensex gained 1.55% during the same period.

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