Cipla Q4 Results: Profit Rises 45%, But Misses Estimates
Cipla's Q4 revenue rose 9% to Rs 5,739 crore against an estimated Rs 5,776 crore.
Cipla Ltd.'s fourth-quarter profit rose, but missed estimates.
The Mumbai-based drugmaker's net profit rose 45% year-on-year to Rs 526 crore in the quarter ended March, according to its exchange filing. That compares with the Rs 751 crore consensus estimate of analysts tracked by Bloomberg.
Sequentially, the profits fell 34%.
Cipla Q4 FY23 Highlights (YoY)
Revenue rose 9% to Rs 5,739 crore against an estimated Rs 5,776 crore.
Ebitda was up 57% to Rs 1,174 crore, as compared with the Rs 1,233 crore forecast.
Ebitda margin stood at 20.5% versus 14.3%. Analysts had estimated it at 21.4%.
The board has recommended a final dividend of Rs 8.50 per share
"In FY23, we recorded highest ever revenue with Ebidta crossing Rs 5,000 crore for the first time," said Umang Vohra, managing director and global chief executive officer, Cipla, in the exchange filing.
"Adjusting for Covid, our core operating profitability continues to be strong at around 23% expanding by 100 basis points over last year. We are excited for the upcoming year, where we look forward to deepening our leadership in branded markets and expanding our differentiated pipeline in the U.S.,” he said.
Other Highlights (YoY)
India business expanded 16% on a Covid-adjusted base of last year. Otherwise, it grew 3% on an overall basis.
The company's One-India business continued the double-digit trajectory growing at 13% ex-Covid during the year led by branded prescription and sustained growth across our acute and chronic therapies, Vohra said in the filing.
The U.S. business grew 27% in absolute terms to $ 204 million, or Rs 2,259 crore.
Vohra said that the U.S. business posted highest ever quarterly revenue at $204 million and $733 million for FY23.
South Africa or SAGA region business contracted 13%.
Business in other international markets, including emerging markets and Europe, rose 7%.
Bulk drugs fell 3% year-on-year.
The company has a cash balance of Rs 6,273 crore as on March 31.
The company's R&D investment stood at Rs 371 crores, or 6.5% of sales. These were 15% higher year-on-year.
Press Call Highlights
Vohra has guided for a 23-24% Ebidta margin range in FY24.
U.S. quarterly revenue run-rate is expected to be in the range of $195-200 million. There was no unusual spike in revenues this quarter owing to Revlimid. Cipla saw a growth in the base business.
Vohra said the company plans to de-risk its business by transferring products from the Goa and Indore facilities to the U.S. facility which has been cleared by the FDA, until clearances are received.
Key Product Updates - Delays expected on gAdvair and gAbraxane
gAdvair: Vohra said that the scientific file review for the product filed from the Indore facility is complete and they are hoping to hear from the U.S. FDA on the facility by end of this month or next. If the facility is cleared, the approvals for the product should follow in immediately. But if that is not the case, Cipla will look to file it from an alternate facility and the date of launch will be unclear. April 2023 was the earlier revised target action date for g-Advair approval.
gAbraxane: The product has been filed from the Goa facility which is also facing U.S. FDA issues. Cipla is already in the process of transferring this product to a partner site and the filing is expected shortly. If the Goa facility is not cleared, a further delay of six months is expected. Cipla had in its Q3 call indicated that the product approval was likely in H2FY24.
Shares of Cipla ended 1.28% down at Rs 931.50 apiece on Friday, compared with a 0.10% rise in the benchmark Nifty 50.
