Chronic portfolio may help Cipla sustain growth outperformance in near term

Margin gains in the September quarter too are expected to continue

Led by higher sales of Covid-related drugs, Cipla reported double-digit growth in domestic sales for the third consecutive month. The company posted sales growth of 13.5 per cent, as compared to 1.3 per cent for the Indian pharmaceutical market (IPM) sector.

Adjusted for sales of Covid drugs, such as Remdesivir, growth is pegged at just under 4 per cent, which is still higher than the market growth. Average growth over the last three months has been 17.6 per cent, as compared to IPM’s 5.3 per cent. 

While Covid-related sales may come down going ahead, analysts expect the company’s domestic sales to outperform