Cipla Limited- Q2 Results

Introduction

Cipla Ltd. is an Indian multinational pharmaceutical company with its headquarters in Mumbai, Maharashtra. The company develops medicines to treat various medical conditions, including but not limited to respiratory diseases, diabetes, depression, and cardiovascular diseases. Cipla was founded in 1935 and was originally called the Chemical, Industrial & Pharmaceutical Laboratories, and the company’s name was changed to Cipla Limited in 1984. Today, it has around 47 manufacturing locations worldwide and sells its products in more than 85 countries.

Cipla declared its financial results for the second quarter of the fiscal year on October 27th and reported a 43% year-on-year increase in its PAT. Here’s a closer look at its operational performance.

Additional Read: Q2 Results Dashboard

Key Financial Metrics

Performance Highlights (Consolidated)

• The drugmaker registered a net profit of ₹1,155.37 Cr for the period under review, up 43% YoY from ₹797.41 Cr during Q2 FY 2022-23.
• The company’s revenue from operations stood at ₹6,678.15 Cr, with a growth of 14.6% YoY from ₹5,828.54 Cr during the same period last year.
• At the operating level, the company’s EBITDA stood at ₹1,734 Cr, up 33.1% YoY. Moreover, the company’s margins were the highest in four quarters at 26%, up 380 bps from 22.2% in 2022.
• Cipla’s total income surged 15% YoY to ₹6,854.47 Cr during the second quarter, up from ₹5,951.49 Cr during Q2 FY 2022-23.
• The company’s North American sales stood at US $229 million during Q2 FY 2023-24 with a 28% YoY growth, as per an exchange filing.

Cipla Limited saw its profits rise by 43% YoY during Q2 FY 2023-24 at ₹1,155.37 Cr. During the first half of the fiscal year, its net profit stood at ₹2,153.44 Cr as against ₹1,503.55 Cr reported during the same period last year.

The company’s total income also grew by 15% YoY and stood at ₹6,854.47 Cr. Sequentially, it increased from ₹6,465.18 Cr reported during Q1 FY 2023-24. For H1 FY 2023-24, Cipla reported a total income of ₹13,319.65 Cr, up 16.53% YoY compared to its total income of ₹11,430.11 Cr in the corresponding period the previous year.

Moreover, the company’s total revenue from operations for the period under review stood at ₹6,678.15 Cr versus ₹6,328.89 Cr during Q1 FY 2023-24, and ₹5,828.54 Cr during Q2 FY 2022-23. For H1 FY 2023-24, the total revenue from operations was reported at ₹13,007.04 Cr compared to ₹11,203.73 Cr during the same period last year.

Cipla Limited: H1 Consolidated Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹11,203.73 Cr	₹13,007.04 Cr
Total Income	₹11,430.11 Cr	₹13,319.65 Cr
Total Expenses	₹9,355.19 Cr	₹10,350.82 Cr
Profit Before Tax	₹2,074.92 Cr	₹2,968.83 Cr
Net Profit for the Period	₹1,503.55 Cr	₹2,153.44 Cr
Total Comprehensive Income	₹1,457.63 Cr	₹2,109.93 Cr

Also Read: Cipla Ltd Share Price

Cipla Limited: Consolidated Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹6,328.89 Cr	₹6,678.15 Cr
Total Income	₹6,465.18 Cr	₹6,854.47 Cr
Total Expenses	₹5,090.58 Cr	₹5,260.24 Cr
Profit Before Tax	₹1,374.60 Cr	₹1,594.23 Cr
Net Profit for the Period	₹998.07 Cr	₹1,155.37 Cr
Total Comprehensive Income	₹890.30 Cr	₹1,219.63 Cr

Cipla Limited: H1 Standalone Financial Figures (YoY)

Particulars	H1 FY 2022-23	H1 FY 2023-24
Revenue from Operations	₹7,997.41 Cr	₹8,982.91 Cr
Total Income	₹8,207.37 Cr	₹9,345.98 Cr
Total Expenses	₹6,256.80 Cr	₹6,722.97 Cr
Profit Before Tax	₹1,950.57 Cr	₹2,623.01 Cr
Net Profit for the Period	₹1,479.46 Cr	₹1,924.71Cr
Total Comprehensive Income	₹1,427.49 Cr	₹1,917.58 Cr

Cipla Limited: Standalone Financial Figures (QoQ)

Particulars	Q1 FY 2023-24	Q2 FY 2023-24
Revenue from Operations	₹4,318.19 Cr	₹4,664.72 Cr
Total Income	₹4,476.17 Cr	₹4,869.81 Cr
Total Expenses	₹3,249.76 Cr	₹3,473.21 Cr
Profit Before Tax	₹1,226.41 Cr	₹1,396.60 Cr
Net Profit for the Period	₹895.02 Cr	₹1,029.69 Cr
Total Comprehensive Income	₹916.14 Cr	₹1,001.44 Cr

Cipla Limited: Consolidated Balance Sheet

Particulars	As of September 30, 2023
Total Current Assets	₹18,468.12 Cr
Total Non-current Assets	₹12,369.62 Cr
Total Assets	₹31,377.09 Cr
Total Current Liabilities	₹5,559.22 Cr
Total Non-current Liabilities	₹633.45 Cr
Total Equity	₹25,095.16 Cr
Total Liabilities	₹6,281.93 Cr
Total – Equity and Liabilities	₹31,377.09 Cr

Stock Performance

The company declared its financial results after market hours on October 27th for Q2 FY 2023-24. Cipla’s shares opened at ₹1,155.55 on Friday and rose 2.29% to close at ₹1,176.50 apiece on BSE.

About the Company

Cipla Ltd. (simply called ‘Cipla’) is a leading Indian multinational pharmaceutical company that manufactures medicines to treat several medical conditions, including depression and diabetes. It is also the third-largest drug producer in the country. Cipla was founded in 1935 and was initially named the Chemical, Industrial & Pharmaceutical Laboratories, but it was renamed Cipla Limited in 1984. The company also provided the world’s first oral iron chelator, Deferiprone, in 1995 and later joined the Indian Pharmaceutical Alliance as a founding member.

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Sources:

https://www.cipla.com/sites/default/files/Newspaper-publication-Q2FY24.pdf

https://www.cipla.com/sites/default/files/Unaudited-financial-Result-Standalone-and-Consolidated-for-the-quarter-ended-30th-September-2023.pdf

https://www.cipla.com/sites/default/files/Q2-FY24-Press-Release.pdf