Cipla Q1 net profit jumps 45% to ₹995 crore

Drug maker Cipla saw a healthy growth across its key India, the US and South Africa markets, during the first quarter ended June 30, 2023. The company posted a net profit of ₹995 crore, up 45 per cent.

Even as the company was in the process of remediation for two of its sites (Indore and Goa), company top brass said, they expected to see greater scrutiny of products going into the US. Recently, a letter from representatives of the US Congress had redflagged quality concerns involving products from China and India.

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The US Food and Drug Administration does a stringent job and has a strong surveillance on facilities across the world, Cipla Managing Director and Global Chief Executive Umang Vohra said, in response to a query during the post-results interaction. And while the company was working on its remediation plans, he said, they were following a de-risked strategy of filing for critical products from two sites.

Growth

“In Q1 FY24, we recorded growth of 18 per cent over last year with EBITDA of ₹1,494 crore driven by (product) mix and other operational efficiencies. Our One-India business continued the double-digit trajectory growing at 12 per cent during the quarter led by branded prescription with sustained growth across chronic therapies. Our continued focus on differentiated portfolio has strengthened our US business which once again posted highest ever quarterly revenue at $222 million. South Africa Private Market bounced back from lows of last year to post a double-digit growth,” said Vohra on the company’s quarterly performance.

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The company would look to drive the chronic therapies branded prescription business in India, expand its differentiated pipeline in the US and target the biggest prescription business in South Africa, he added.

Cipla’s total revenue stood at ₹6,329 crore for the quarter under review, up close to 18 per cent from the corresponding period last year. It’s one-India business was buoyed by branded prescription, trade generics and consumer health.