Cipla Q3FY22 results: Profit dips 2.6% YoY to Rs 729 crore

Drug firm Cipla today reported a 2.6 per cent YoY decline in the consolidated profit at Rs 729 crore for the quarter ended December 31, 2021. It had posted a profit of Rs 748 crore in the corresponding quarter ended last year.

The company's profit from operations grew 6 per cent YoY to Rs 5,479 crore as against Rs 5,169 crore posted last year. The company's EBITDA fell by 3 per cent YoY to Rs 1,243 crore compared to Rs 1,281 crore.

Key Highlights of the quarter

• One India: Overall business grew by 13 per cent YoY led by sustained momentum across core therapies and traction in flagship brands; modest contribution from the COVID portfolio.
• SAGA: South Africa private business grew 16 per cent YoY growth in ZAR terms; maintains market-beating trajectory in secondary terms.
• US business: Reported USD 150Mn revenue; Robust momentum in core formulation business; strong traction in the respiratory portfolio.
• New approval: Lanreotide injection 505 (b)(2); expands peptide portfolio.
• R&D investments stand at Rs 262 crore; Priority development projects spend on track.
• Growth in operating profitability and prudent working capital management drives continued healthy net cash positive position at December 2021.

"I am pleased to see the strong launch and commercial momentum across our core markets during the quarter. Our portfolio execution in branded markets of India & South Africa and strong respiratory traction driving our US generic franchise to a multi-quarter high quarter were key drivers. The unlocking of our first 505(b)(2) peptide asset, lanreotide injection is an important step in strengthening our complex generics engine, inching up our US footprint." said Umang Vohra, MD and Global CEO, Cipla Ltd.

He further added, "Our EBITDA margins for the quarter came in at 22.7 per cent and given the YTD traction, we are well placed to close the year in line with our guidance of 22 per cent. We continue our efforts to improve patient access for therapies including covid products and ensuring adequate supply across all our markets."