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Cipla advances after strong Q1 results

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Cipla jumped 6.55% to Rs 776.30 after the company's net profit rose 21% to Rs 578 crore on 9% increase in total revenue from operations to Rs 4,346 crore in Q1 FY21 over Q1 FY20.

EBITDA in Q1 June 2020 was at Rs 1,049 crore, up by 16% from Rs 905 crore recorded in Q1 June 2019. EBITDA margin stood at 24.1% as 30 June 2020 as against 22.7% as 30 June 2019.

Cipla said that it has achieved zero net debt position led by strong collections and improved EBITDA.

India business grew by 16% YoY with strong growth across the three businesses. Overall South African business continued the strong growth momentum to deliver growth of 17% on a YoY basis in local currency; private business continues to outpace the market. The US business reported $135 million led by Albuterol ramp-up; 14% QoQ growth.

The company's R&D investments amounted to Rs 200 crore, representing 4.6% of the total revenue from operations.

Umang Vohra MD and Global CEO, Cipla, said: "Extremely pleased to report our Q1FY21 performance which reflects the inherent strength of our business backed by agile and resilient operations, cost control initiatives and continued delivery on our strategic priorities.

During the quarter, our businesses actively re-imagined their operating models to drive strong growth across markets of India, South Africa, US and focused execution on cost optimization helped drive the quarter EBITDA to 24%.

Our global lung leadership aspirations continued to gain momentum along with limited competition launches in the US."

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.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Mon, August 10 2020. 09:20 IST