Cipla Ltd. will infuse ZAR 900 million, or around Rs 415 crore, in its wholly owned subsidiary Cipla Medpro South Africa Proprietary Ltd.
The funds invested will be utilised to lower the inter-group debt along with improving the capital structure of Cipla Medpro and its subsidiaries, according to an exchange filing on Monday.
The investment is anticipated to be completed on or before Feb. 28, 2025, through cash consideration, the filing further said.
Notably, Cipla Medpro is involved in the business of manufacturing, marketing and supply of pharmaceutical products in South Africa.
Cipla Q3 Performance
Cipla Ltd.'s consolidated net profit surged by 49% year-on-year in the third quarter of the current financial year, surpassing analysts' expectations.
The pharmaceutical company reported a consolidated net profit of Rs 1,571 crore for the quarter ending in December. This exceeded the Bloomberg-tracked analysts' consensus estimate of Rs 1,208 crore.
The company's revenue rose by 7.1% year-on-year to Rs 7,073 crore. Additionally, the earnings before interest, taxes, depreciation, and amortisation increased by 13.8% to Rs 1,989 crore, with the margins expanding to 28.1% from 26.5%.
Shares of Cipla on Monday closed 1.32% lower at Rs 1,420.55 apiece on the NSE, compared to a 0.52% fall in the benchmark Nifty 50 index. The stock has fallen 0.93% in the last 12 months.
Out of 37 analysts tracking the company, 24 maintain a 'buy' rating on the stock, eight recommend 'hold' and five suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 16.2%.
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