Cipla to raise Rs 3,000 crore, Q4 net misses Street view: Key takeaways

Mumbai: Pharmaceutical major Cipla missed Street estimates and reported a 33.32 per cent year-on-year (YoY) drop in consolidated net profit at Rs 238.49 crore for the March quarter.

It had posted a net profit of Rs 357.68 crore in the same quarter a year ago. An ET NOW poll had estimated the net profit at Rs 355 crore.

Revenue from operations for the quarter fell to Rs 4,376.19 crore from Rs 4,403.98 crore in the year-ago quarter.

Cipla recently partnered with Gilead Sciences for the manufacturing and distribution of the investigational medicine Remdesivir to treat Covid-19 patients upon approval.

Here are the key takeaways from Cipla’s Q4 earnings:

Fund raising plan
The company said it will raise up to Rs 3,000 crore by issue of equity shares, depository receipt or bonds subject to approvals.

Management commentary
“Our key markets continued to demonstrate strong growth momentum in the quarter,” said Umang Vohra, MD and Global CEO, Cipla.

“The USFDA approval for generic Albuterol MDI and the successful completion of the Phase 3 clinical study of generic Advair Diskus has strengthened our respiratory franchise in the US market; furthering our aspirations of becoming the lung leaders of the world,” he added in a release.

Margin hit
The company said its Ebitda margin stood at around 15 per cent, which was impacted by 200 basis points (bps) due to Covid-related cutoff. In the year ago period, the margin was at 21.8 per cent.

India business
The Rx business grew by 12 per cent on a YoY basis, recording a third consecutive quarter of market-beating growth. The trade Gx business revives strongly recording its second consecutive growth quarter.

South Africa business
Overall business delivered growth of 10 per cent on a YoY basis in local currency; the private business continues to outpace market significantly, the company said in a release.

US business
Cipla reported $118 million post normalisation of IP-enabled opportunity. The company’s North America sales dropped 25 per cent to Rs 853 crore.

Research & Development
The company’s R&D investments stand at Rs 311 crores or 7.1 per cent of sales.

Debt
The company’s debt stood at Rs 2,816 crore at the end of March quarter, 34.75 per cent lower from Rs 4,316 crore a year ago