Cipla Q4 Results: Profit Falls 12%; Misses Estimates

Cipla Ltd.'s quarterly profit fell, missing estimates.

Cipla crossed the $1 billion milestone in their domestic branded prescription business driven by the sustained growth across acute and chronic portfolio, Umang Vora, managing director and global chief executive officer at Cipla said in the exchange filing.

"We continue to respond to challenging input cost environment with cost optimization and mix management while maintaining high serviceability. We are excited about the upcoming complex launches in H2FY23 which will further strengthen overall business and profitability trajectory," he said.

Vora guided for a 21-22% Ebidta range (similar to FY22) for FY23 despite new launches, in the post-earnings call. This has been given keeping in mind cost increases of around 200-250 basis points that are likely to happen, he said.

FY22 Highlights (YoY)

• Revenue rose 14% to Rs 21,763 crore.

• Ebitda rose 7% at Rs 4,553 crore.

• Ebitda margin stood at 20.9% against 22.2%.

• After-tax profits were up 5% at Rs 2,517 crore.

• India sales rose 27% to Rs 9,828 crore, contributing 45% to total sales.

• U.S. business grew 8.3% to Rs 4,431 crore, comprising 20% of total revenue.

• Overall, South Africa or SAGA region business, excluding animal health business, expanded 6.6%. Business in other international markets, including emerging markets and Europe, rose 1.2%.

• SAGA contributed to 17% of the total revenue for the quarter, while international markets made up 13%.

• Bulk drugs business, which makes up 3% of the total revenue, fell 5% over the preceding year.

• The company continues to be net cash positive as on March 31.

Shares of Cipla closed 1.2% lower before the results were announced against the benchmark S&P BSE Sensex's 0.2% fall.