Cipla Q2: Profit Soars 43% To Rs 1130.91 Crore, Shares Rally Over 2%

Leading pharmaceuticals company Cipla Ltd today declared a surge of 43.3% in its profit to Rs 1130.91 crore as compared to Rs 788.90 crore in the corresponding quarter of FY 2023, beating estimates. The company declared its revenue from operations as Rs 6678.15 crore, up 14.6% from Rs 5828.54 crore in the corresponding quarter of FY 2023. The pharmaceuticals major announced its EBITDA at Rs 1734 crore, up 33.1% from 1302 declared in Q2 FY2023, as per its BSE filing dated October 27, 2023.

EBITDA margin was at 26% against 22.2% in the year-ago period.

"Pleased to share an exceptional set of results reflecting the strength of our core business across key markets of India, North America and South Africa. We reported our highest ever quarterly revenue with EBITDA margins scaling up to 26 percent," MD & Global CEO Umang Vohra said in a statement.

Cipla's One-India Revenue soared 10% YoY amid strong execution across branded prescription and trade generics businesses.

Last trading price of Cipla Ltd share on BSE is Rs 1173.85 per share with intraday surge of 2.06%. Cipla shares declined nearly 2.17% in last 1-week when S&P BSE Healthcare fell 2.58% and BSE Sensex declined 2.47% amid weak global cues.

Cipla stock surged 28.44% in last 6-months, rose 9.61% YTD, offered return of 27% in last 2-years, and rose 52% in last 3-years. Its market capitalisation is Rs 94,767.90 crore.

Prathamesh Masdekar, Research Analyst, StoxBox said, "Cipla has reported highest ever quarterly revenue during the quarter, led by stellar performance across all markets. Overall, India's branded-prescription business continued strong growth, driven by key therapies in the chronic portfolio, double-digit growth in trade generics despite the inconsistent season, and strong annual growth in consumer health business despite seasonally weak H1FY24."

At the same time, US businesses posted the highest-ever quarterly revenue by focusing on differentiated portfolios. We expect Cipla to work towards establishing a strong foundation for growth in upcoming quarters led by (1) Continuing leadership in chronic therapies in the branded prescription business in India; (2) Expanding differentiated pipeline in the US business and plan to launch one peptide product in FY24 and 3-4 peptide products in FY25; (3) Strong demand in South African private business and six brands launched across multiple therapies in Q2FY24; and (4) Management expectations to expand Cipla's reach to an enhanced range of therapies and a wider basket of product portfolio, added Prathamesh Masdekar.

Cipla is a leading pharmaceutical company that provides affordable medicine to patients across geographies. It came into existence in 1935.