Cipla Q2 results: Profit jumps 41% to Rs 665 crore, revenue up 15%

Drug major Cipla on Friday reported a 41.18 per cent jump in its consolidated net profit at Rs 665.43 crore for the second quarter ended September 30, 2020, driven by strong sales in all markets. The Mumbai-headquartered pharma company had posted net profit of Rs 471.35 crore in the same quarter a year ago.

The total revenue from operations rose by 14.62 per cent to Rs 5,038.29 crore, from Rs 4,395.78 crore in September quarter of 2019.

India business grew by 17 per cent YoY and 33 per cent QoQ with strong growth across the three businesses and continued servicing of patients with COVID-19 portfolio.

Earnings before Interest, Tax, Depreciation, and Amortisation (EBITDA) grew by 29 per cent to Rs 1,177 crore as against Rs 909 crore in the corresponding period last year.

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Commenting on Q2 results, Umang Vohra MD and Global CEO, Cipla said, "The performance reflects strong demand backed by resilient operations management. The quarter also saw sustained focus on cost optimisation which helped deliver an EBITDA margin of over 23 per cent. We continued to deliver on our promise of Caring for Life by being at the forefront in combatting COVID-19 through a spectrum of offerings, which also helped us deliver market beating performance in India."

"Our businesses in South Africa, US and other international markets maintained the growth momentum with strong traction in the base business and new launches. In line with our aspiration of being global lung leaders, we will continue our investment towards expanding our global respiratory franchise," he added.

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The company said that continued momentum across private and tender businesses drives South Africa business. It grew by 14% on a YoY basis in local currency, driven by strong demand across prescription, OTC and tender business.

US business reported $141 million led by continued traction in new launches, it said.

The European operations reported 24 per cent growth on a YoY basis in dollar terms led by strong performance in key DTM markets. "The emerging market business maintained scale in dollar terms with continued growth across all regions; Remdesivir supplies commenced in multiple emerging markets," it said.

As on September 30, 2020, Cipla net cash position stood at Rs 3,623 crore, led by strong cost and collections governance.

Meanwhile, shares of Cipla ended Friday's trade at Rs 789.90, down 0.5 per cent, against previous closing price of Rs 793.85 on the BSE.

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