Dividend Paying Pharma Stock In Focus After Impressive Q3 Earnings, Cipla's Profit Rises 32% YoY

Pharmaceutical giant, Cipla has reported an impressive third quarter for FY24. The dividend-paying stock will be in focus accordingly in this week's trading session.

Cipla earned a 31.8% YoY growth in net profit to Rs 1,056 crore in Q3FY24, while its revenue jumped 13.7% YoY to Rs 6,604 crore. EBITDA was robust growth of 24.2% YoY to Rs 1,748 crore.

Umang Vohra, MD and Global CEO, Cipla said, "I am happy to announce results for yet another quarter which further established our strengths of our core business in India, North America, and South Africa. Our topline growth for the quarter was at an impressive 14% YoY with strong EBITDA margins at 26.3%. One India business grew at a healthy
12% YoY backed by strong performance across Branded Prescription, Trade Generics and Consumer Health."

On the American market, Vohra said, "In North America, we continue to scale newer peaks by posting the highest ever quarterly revenue yet again at $ 230 Mn, supported by positive traction in key assets and base business. Our South Africa business further extended its momentum from last quarter by growing at 15% in local currency terms driven by strong execution across prescription, OTC and tender."

Here are the key highlights of Cipla's Q3 results on a geographical basis:

1. One-India: Revenue growth at 12% YoY supported by growth across Branded Prescription, Trade Generics and Consumer Health. Branded Prescription continues to grow faster than the market with an increase in chronic share.

2. North America: Highest ever quarter at $ 230 million at 18% YoY growth supported by continuing momentum in key assets and robust demand in base business along with some year-end buying.

3. South Africa: South Africa continued its growth journey, by posting a solid 15% YoY increase in revenue in local currency terms. This performance was supported by positive traction in prescription, OTC and tender.

4. R&D investments stand at INR 400 Cr or 6.1 % of sales, higher by 10% YoY driven by product filings and developmental efforts.

5. Strong balance sheet health continues with a robust net cash position of INR 7,143 crore post repayment of ZAR 720 Mn term loan in South Africa.

Looking ahead, Vohra said, "Our focus continues on expansion in chronic therapies, growing big brands, global wellness as well as developing our R&D pipeline in respiratory and peptides. We will continue to focus on driving
profitable growth across businesses."

Established in 1935, Cipla is a global pharmaceutical company focused on agile and sustainable growth, complex generics, and a deepening portfolio in its home markets of India, South Africa, North America, and key regulated and emerging markets. The company's 47 manufacturing sites around the world produce 50+ dosage forms and 1,500+ products using cutting-edge technology platforms to cater to our 80+ markets.

On Saturday, Cipla's share price ended at Rs 1,312.60 apiece, down by 1.2% on BSE with a market cap of Rs 1,05,973.76 crore.

Cipla is also a dividend paying pharma stock. In 2023, the company paid up to 425% dividend amounting to Rs 8.5 per share to its shareholders. It has been consistently paying dividends for the past five years.