On January 22, 2024, Cipla Limited (BSE, NSE: CIPLA) announced its Q3 2023-24 results, posting its highest-ever Revenue and EBITDA Margin across segments and geographies.
Table of Content
Result Takeaways
Showcasing a healthy Q3 FY24, Cipla Limited released strong financials and robust business highlights for the quarter in question:
- During Q3 FY24, the Income from Operations stood at ₹6,604 Cr, a rise of 13.7% YoY.
- For the quarter, the EBITDA was reported at ₹1,748 Cr (26.5%), a rise of 24.2% YoY.
- The PAT or Profit After Tax for the quarter was clocked at ₹1,056 Cr, an increase of 31.8% YoY.
- For the One-India business segment, the Revenue grew 12% YoY aided by growth across Trade Generics, Branded Prescription, and Consumer Health. The segment of Branded Prescription continues to have faster growth compared to the overall market with a chronic share increase.
- In the North American business segment, the quarter experienced its highest-ever at $230 Mn, growing 18% YoY led by consistent momentum in major assets and strong demand in base business accompanied by year-end purchasing.
- The South African side of the business continued its healthy growth journey recording a 15% increase in Revenue on a YoY basis. This was aided by positive traction in OTC, prescription, and tender.
- The Company’s R&D investments stand at ₹400 Cr (6.1% of sales). This is higher by 10% on a YoY basis, led by developmental efforts as well as product filings.
- In Q3 FY24, the Company continues to possess a healthy balance sheet with Net Cash at ₹7,143 Cr after repayment of ZAR 720 Mn (for a term loan taken in South Africa).
Additional Read: Q3 Results Dashboard
The Management’s Take on Q3 Results
The MD and Global CEO of Cipla Limited had some key aspects of Q3 results to share and these are highlighted below:
- Q3 FY24 results reflect the strength of the Company’s core business in India, South Africa, and North America.
- The topline growth in Q3 stood at 14% on a YoY basis, accompanied by a robust EBITDA Margin of 26.3%.
- The Company’s One-India business grew at 12% on a YoY basis, and this was largely due to solid performances by Trade Generic, Consumer Health, and Branded Prescription business segments.
- The North American side of the business has posted its highest-ever single quarterly Revenue, while the South American segment continues to solidly grow taking its cue from the last quarter.
- The Company continues its concentration on expansion in the area of chronic therapies, global wellness, developing R&D in peptides and respiratory areas, and growing big brands with a view to profitable growth across businesses of the Company.
Q3 Segment-Wise Market Information
Here is some key information about Q3 results concerning major markets and business segments of Cipla:
- The One India Business grew by 12% YoY driven by growth across the three main verticals of Consumer Health, Trade Generics, and Branded Prescription. The Branded Prescription segment outpaced the market by 10%, led by urology, chronic therapies, and cardiology treatments, with the share of chronic therapies improving in the general portfolio by 115 bps, reaching 60.3% growth. In the vertical of Consumer Health, the Company experienced above ₹100 Cr in sales. The EBITDA trajectory is stable and continuing with sustainable margins.
- The North American market recorded an all-time high with a quarterly Revenue of $230 Mn with a rise of 18% YoY. This substantial growth was boosted by prominent assets such as Albuterol and Lanreotide in tandem with a solid demand for base business. Additionally, in Q3, the Company successfully made a filing for gSymbicort and another asset in the inhalation category of therapies.
- The South African and Global Access part of the business witnessed a 35% YoY growth. The Prescription segment outpaced the overall market and was at 7% growth, while the market was at 2%.
Financial Results at a Glance
Here is a glimpse of the financial results in Q3 (figures in ₹ Cr as reported by the Company, except where indicated by %):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY Growth % |
| Total Operational Income | 6,544 | 5,728 | 14.2% |
| EBITDA | 1,720 | 1,377 | 24.9% |
| % of Income from Operations | 26.3% | 24.0% | 230 bps |
| Profit After Tax (PAT) | 1,049 | 790 | 32.7% |
Additional Check: Cipla Limited Share Price
Q3 FY24 Result Summary
Cipla Limited has a long history in the Pharma business, having been established as far back as 1935. Now, it is a global player in the Pharma Sector, displaying agile growth and sustainable evolution. The Company does valuable business its home markets of India, South America, and North America while tapping into emerging areas of business growth. The strengths of the Company lie in the key therapies related to urology, respiratory disease, anti-retroviral drugs, cardiology, CNS segments, and anti-infective treatment conditions. The 47 international manufacturing plants of the Company produce 50-plus dosage forms and 1,500-plus products. Cutting-edge technology platforms cater to more than 80 of the Company’s markets.
With a ranking of the 3rd biggest Pharma company in India, and the 3rd biggest in the Pharma prescription sector in South Africa, Cipla Limited makes a difference to patients and their treatment in a huge way. In North America, it is the 4th most prominent in the segment of prescription GX inhalation therapies. Standing out as a key player in HIV/AIDS treatment at under a dollar per day in markets like Africa, the Company grows with each fiscal year due to its promise of health for all. Q3 results are a testament to the commitment of a Pharma company with a heart as its profits reflect its success in broad markets. In its prescription brands, the Company has outpaced the overall market and has retained its top position as the main respiratory therapy provider in India. Cipla’s quarterly growth is a reflection of its future in the markets of India, South Africa, the USA, and other key regulatory and emerging marketplaces in the world.
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Source: https://www.cipla.com/sites/default/files/Cipla-Q3FY24-Press-Release.pdf
