Cipla surges 4% on beating Q2 estimates; profit jumps 43%, revenue up 15%

The positive growth was aided by strength in domestic as well as US sales. Its overall Q2 revenue was its highest ever in a quarter, Cipla said.

Cipla Ltd's stock price surged up to 4 per cent on BSE to an intra-day high of Rs 1,197 apiece on Friday after the company posted better than expected earnings for the September quarter (Q2FY24).

At 2:40 pm, however, the stock had pared some gains and was up around 2.3 per cent.   

Cipla beat analyst estimates on both topline and bottomline growth with its Q2 net profit growing 43 per cent to Rs 1,130.9 crore against last year, while revenue rose 14.6 per cent to Rs 6,678 crore.  

A poll of 6 brokerage estimates had pegged the net profit and revenue at Rs 985 crore and Rs 6,469 crore, respectively. Refer here

The positive growth was aided by strength in domestic as well as US sales. Its overall Q2 revenue was its highest ever in a quarter, the company said. 

The One-India business grew at 10 per cent YoY with continued market beating performance in the branded prescription and Trade Generics business, it said.

Within this, branded prescription business saw a growth of 11 per cent driven by key therapies in the chronic portfolio. Trade generic business saw 'double-digit' growth despite weak seasonality.

While consumer health segment's quarterly performance was impacted by inconsistent weather patterns. "Sustainable EBITDA trajectory continues with margins in mid-teens," the company said. 

North America sales also came above analyst expectations. At $229 million, this was the highest ever US revenue seen in a quarter with a 28 per cent YoY growth.

In rupee terms, North America sales was up 32 per cent at Rs 1,887 crore. "Market share expanded across key differentiated assets, Lanreotide market share now stands at 20 per cent", Cipla said. 

In South Africa, private market sales grew 12 per cent YoY in local currency terms on robust performance in prescription and OTC segment. 

"Our pipeline is progressing really well with key milestones achieved in Respiratory and Peptide assets. We will continue our focus on driving profitable growth across businesses”, said Umang Vohra MD and Global CEO, Cipla. 

Overall Ebitda margins were aided by declining raw material costs and jumped to 26 per cent from 22.3 per cent last year.