Cipla skids after Q4 PAT declines 12% YoY

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Cipla fell 0.90% to Rs 917.90 after the company's consolidated net profit fell 12.4% to Rs 362 crore on 14.2% increase in total revenue from operations to Rs 5,260 crore in Q4 March 2022 over Q4 March 2021.

On a consolidated basis, EBITDA fell 4.2% year-on-year to Rs 763 crore in Q4 March 2022. EBITDA margin stood at 14.5% in Q4 March 2022, lower than 17.3% in Q4 March 2021.

During the quarter, Cipla's One India business grew 21% YoY across branded prescription, trade generics and consumer health; 15% YoY growth adjusted for covid portfolio.

The SAGA region grew by 8% YoY basis in USD terms; private business grew 17% on a YoY basis in ZAR terms. SAGA includes South Africa, Sub-Saharan and Cipla Global Access business.

US core formulation revenue stood at multi-quarter high of $160 million, a 17% YoY growth. It reported strong traction in respiratory assets as well as contribution from peptide assets.

Cipla's R&D investments stands at Rs 322 crore or 6.1 % of sales; Higher by 16% YoY driven by initiation of clinical trials on a respiratory asset.

For the year, consolidated net profit rose 4.7% to Rs 2,517 crore on 13.6% increase in total revenue from operations to Rs 21,763 crore. EBITDA rose 6.4% YoY to Rs 4,578 crore in FY22.

The board recommended a dividend of Rs 5 per equity share for the year 2021‐22.

Umang Vohra, MD and Global CEO, Cipla, said: "I am pleased to see the continued momentum across our key markets despite adverse seasonality impacting overall business mix. Our One-India business continued the double-digit trajectory during the quarter. We crossed the $1Bn milestone in our domestic branded prescription business driven by the sustained growth across our acute and chronic portfolio. Our established respiratory franchise and contribution from peptide assets has strengthened our US run rate to $160Mn. Adjusting for covid linked and other one-time charges, our core operating profitability continues to be strong underpinned by the strength of our business fundamentals. We continue to respond to 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."

As on 31 March 2022, Cipla's total debt stood at Rs 824 crore while its cash and cash equivalents stood at Rs 4,965 crore.

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.

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