Cipla Q4 Results: Topline and margins below estimates; ₹13 per share dividend announced

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Pharma major Cipla has reported a consolidated net profit of ₹939 crore for the January to March period, up 79% year-on-year (YoY), compared with ₹525.6 crore in the year-ago period. The profit figure was a little higher than CNBC-TV18’s estimate of ₹923.5 crore.

Revenue from operations during the quarter under review jumped 7.4% (YoY) to ₹6,163 crore as against ₹5,793 crore in the corresponding quarter of last fiscal. However, the bottomline was 1.4% lower than our poll of ₹6,250.9 crore.

The company’s operating profit or EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 12% YoY to ₹1,316 crore, while margins expanded by 80 basis points to 21.3%.

CNBC-TV18 expected the pharma company to report an EBITDA of nearly ₹1,408 crore, and a margin of 22.5%.

The margin decline during the fourth quarter of FY24 is due to seasonality, Cipla said.

The management has guided for a 24.5%-25.5% EBITDA (earnings before interest, taxes, depreciation, and amortisation) margin for FY25. This guidance does not factor in USFDA compliance at the Goa site.

The guidance is based upon strong India growth, differentiated and complex launches in the US, and strong South Africa momentum. Interestingly, the margin guidance is devoid of any adverse outcome of USFDA embargo and a possible delay in key US launches.

The Indian business reported a growth of 7% on-year, backed by branded prescription and trade generics. Branded prescription outpaced market growth by 100 bps; Trade generics continues to lead the market.
Consumer business impacted by soft seasonal demand.

The US business reported revenue at $226 million, up 11% YoY, supported by continued growth in key differentiated assets as well as base portfolio.

“I am pleased to share our performance for the year where we made substantial progress across our focused markets. In FY24, our revenues crossed the threshold of ₹25,000 crore whereas operating margins significantly improved to cross ₹6,000 crore for very first time, growing at healthy 14% on topline and 26% on profitability YoY,” said Umang Vohra MD and Global CEO, Cipla.

Vohra said this was backed by one-India revenue breaching ₹10,000 crore, North America revenue surpassing $900 million and South Africa reaching top spot in prescription market, with all three businesses growing in double digits over last year with improved profitability.

On entering into FY25, the company’s focus will be on our priorities of market leading growth in our key markets, growing big brands bigger, investing in future pipeline as well as focusing on resolutions on regulatory front, he added.

The Board has also recommended the payment of a final dividend of ₹13 per equity share for the financial year 2024.

Record date for the said dividend has been fixed as August 2, 2024.

The dividend, if approved by the shareholders, will be paid within 30 days from the date of the Annual General Meeting (AGM).

The 88th AGM of the company will be held on Tuesday, August 20, 2024.

Following the earnings announcement, shares of Cipla Ltd. were trading 1.21% lower at ₹1,342.30 apiece on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow