Cipla Ltd.'s first-quarter profit rose, aided by demand for its core therapies and the Covid-19 portfolio in India.
The Mumbai-based drugmaker's net profit rose 73% sequentially to Rs 714.7 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 641.3-crore profit estimate of analysts tracked by Bloomberg.
Profit rose even as the company recognised an impairment of Rs 124.6 crore towards an investment in an associate firm, Avenue Therapeutics, that didn't get approval for a drug from the U.S. Food and Drug Administration for the second time.
Revenue rose 19% sequentially to Rs 5,470.7 crore. Analysts expected Rs 5,134 crore.
Ebidta increased 69% to Rs 1,312.3 crore against the estimated Rs 1,129.2 crore.
Margin rose to 24% from 16.9%, compared with the estimate of 22%.
Other Highlights (QoQ)
India sales rose 50% to Rs 2,710 crore, contributing 49% to total sales.
U.S. business grew 4% to Rs 1,038 crore, comprising 19% of total revenue.
The company ranked second in the overall chronic portfolio in India and was the market leader in respiratory and urology therapies as on June, according to IQVIA MAT data.
Bulk drugs business grew by 35%, which includes a one-time profit share on the commercial supply of an API to a partner.
The company's respiratory business improved in the U.S. as the market share for Albuterol improved and it launched Arformoterol, Umang Vohra, managing director and global chief executive officer at Cipla, was quoted as saying in the earnings statement.
Shares of Cipla closed 0.6% up on Aug. 5 ahead of the earnings announcement compared with a largely unchanged S&P BSE Sensex.
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