Pharmaceutical giant Cipla has reported an impressive consolidated net profit of Rs 939 crore for the quarter ended March 2024, marking a remarkable 78 percent surge compared to last year’s figure of Rs 525.6 crore. This stellar financial performance exceeded market estimates and highlighted the company’s robust growth trajectory in a challenging economic environment.
Consolidated revenue from operations for the quarter under review stood at Rs 6,082 crore, reflecting a 4 percent increase from Rs 5,793.3 crore recorded in the corresponding period a year ago. Although slightly below the forecasted revenue of Rs 6,224 crore, the revenue growth underscores Cipla’s resilience and ability to navigate market dynamics effectively.
At the operating level, Earnings Before Interest Tax Depreciation and Amortisation (EBITDA) witnessed a notable 12 percent rise to Rs 1,316 crore, compared to Rs 1,173 crore in the previous fiscal year. The EBITDA margin also improved to 21.3 percent from 20.5 percent in the same period last fiscal, demonstrating enhanced operational efficiency and profitability.
Cipla’s India business experienced a 7 percent year-on-year growth, driven by branded prescription and trade generics, while the North American region reported revenue of $226 million, marking an 11 percent increase year-on-year. This growth was supported by continued expansion in key differentiated assets and the base portfolio, underscoring Cipla’s strong market presence and strategic initiatives in key geographic markets.
During the quarter, research and development (R&D) expenses surged by 19 percent year-on-year to Rs 444 crore, accounting for 7.2 percent of the revenue. This increase was attributed to product filing costs and developmental efforts aimed at strengthening Cipla’s pipeline and innovation capabilities. On a full-year basis, R&D costs totaled Rs 1,571 crore, representing 6.2 percent of the revenue.
Furthermore, Cipla allocated Rs 1,315 crore towards capital expenditure during the year, focusing on growth initiatives and enhancing its capacities and capabilities to meet evolving market demands and drive future growth.
Established in 1935, Cipla has emerged as a leading player in the pharmaceutical industry, with a diverse product portfolio comprising over 1,500 drugs catering to various therapeutic segments. The company operates in more than 80 markets worldwide, with a significant contribution from the formulation segment, which accounts for over 97 percent of sales in FY23.
Led by the visionary leadership of Dr. YK Hamied, Cipla continues to uphold its legacy of excellence and innovation, leveraging its extensive expertise and global presence to deliver value to stakeholders and make a meaningful impact on healthcare worldwide.
