Cipla Q1 Results: Profit Falls But Beats Estimates

Cipla Ltd.’s first-quarter profit fell but beat estimates.

Other Highlights (YoY)

• India business contracted 8%, contributing 46% to total sales. Adjusted for Covid-19 portfolio, it grew 9%.

• The company said that excluding Covid contribution, the core portfolio continued momentum, supported by growth across branded prescription, trade generics, and consumer health.

• The U.S. business grew 16%, comprising 22% of total revenue. This was led by a steady momentum in core formulations or finished drug business, led respiratory and peptide assets.

• South Africa or SAGA region business, excluding animal health business, contracted 6%.

• Business in other international markets, including emerging markets and Europe, rose around 24%. The scale, the filing said, was supported by strong direct-to-market growth across geographies, offset by forex volatility and muted business-to-business demand in Europe.

• SAGA contributed to 15% of the total revenue for the quarter, while international markets made up 13%.

• Bulk drugs, which make up 3% of the total revenue, slumped 55% year-on-year. This could be attributed to the higher Q1 FY22 base due one-time profit share on an API supply.

Shares of Cipla closed 1.08% higher before the results were announced compared with a 1.25% rise in the benchmark Sensex.