Cipla Q1 FY25 results: Net profit up 25% at Rs 988 crore, revenue rises 9%
Cipla boasts a robust net cash balance of Rs 8,449 crore. Debt obligations primarily pertain to lease liabilities and working capital management.
Mumbai-headquartered Cipla posted a 25.41 per cent year-on-year rise in profit after tax during the first quarter of financial year 2024-25 concluded on June 30, reaching Rs 988 crore. Cipla’s revenue from operations rose by 8.92 per cent year-on-year to Rs 6,624.86 crore, riding on US business performance.
Cipla stock was up 5.68 per cent in afternoon trade on BSE.
On a sequential basis, the company exhibited a 5.67 per cent increase in revenue, along with profit after tax, which also rose by 18.28 per cent.
Speaking on the results, Umang Vohra, managing director and global chief executive officer, Cipla stated, “In Q1 FY25, we recorded revenue growth of 7 per cent over last year with an Ebitda margin of 25.6 per cent driven by mix and other operational efficiencies. Our One-India business continued on its growth trajectory during the quarter, led by Branded Prescription which grew at 10 per cent. Going ahead, focus will be on growing our key markets, further building our flagship brands, investing in future pipelines as well as focusing on resolutions on the regulatory front.”
The US business posted all-time high quarterly revenue at $250 million due to traction in the differentiated portfolio. In South Africa, Cipla recorded a growth of 19 per cent year-on-year in local currency terms, led by the private market.
The company invested Rs 353 crore in research and development, constituting 5.3 per cent of sales, reflecting a year-on-year increase of 1 per cent. This investment was primarily directed towards product filings and developmental initiatives.
The Indian branded prescription business witnessed a growth of 10 per cent, primarily driven by a strong performance in chronic therapies such as respiratory, cardiac, and urology, which outperformed the overall market. The proportion of chronic treatments in the portfolio increased by 1.06 percentage points year-over-year to 61.5 per cent.
The company successfully completed the transition of its India Trade Generics business to a new distribution model by the end of the first quarter. This revamped model is expected to enhance operational control, expand distributor reach, and strengthen channel relationships. The business has already resumed growth.
The Indian Consumer Health division reported a year-on-year growth of 3 per cent, influenced by the high performance of the previous year. Key brands Nicotex, Omnigel, and Cipladine solidified their leadership positions within their respective market segments.
First Published: Jul 26 2024 | 3:48 PM IST