In This Article:
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Quarterly Revenue: INR7,073 crore, growth of 8% YoY.
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EBITDA Margin: 28%, up by 184 basis points YoY and 138 basis points QoQ.
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Gross Margin: 68%, 166 basis points above last year's figures.
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Profit After Tax: INR1,571 crore, about 22% of sales.
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R&D Investment: INR360 crore, approximately 5% of revenue.
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Net Cash Position: Net cash equivalent balance of INR8,947 crore.
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Debt: INR466 crore, including lease liability.
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One India Growth: 10% YoY.
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One Africa Growth: 10% YoY.
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EMEU Growth: 22% in INR terms.
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North America Revenue: $226 million for the quarter.
Release Date: January 28, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Cipla Ltd (BOM:500087) reported its highest-ever quarterly revenue and all-time high EBITDA margins, driven by strong performance across core markets.
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The company's One India business delivered a healthy growth of 10% year on year, with significant contributions from branded prescriptions and trade generics.
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Cipla Ltd (BOM:500087) has made significant investments in its US facilities, enhancing its manufacturing capabilities and filing for key assets like generic Advair.
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The company's consumer health business witnessed strong traction, with anchor brands maintaining leadership positions in their respective segments.
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Cipla Ltd (BOM:500087) achieved a significant growth of 9% in its One Africa business in US dollar terms, with South Africa growing at 21% in ZAR terms.
Negative Points
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Cipla Ltd (BOM:500087) faced supply disruptions in its North America business, particularly affecting the lanreotide product.
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The company experienced delays in key product launches in the US, including Advair and Draxxin, due to regulatory clearance issues.
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Cipla Ltd (BOM:500087) received eight 483 observations from the USFDA inspection at its Virgonagar, Bengaluru facility, with official classification awaited.
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The company's trade generics business faced challenges in maintaining growth momentum due to market conditions and internal transitions.
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Cipla Ltd (BOM:500087) acknowledged that the 28% EBITDA margin achieved in the quarter is not sustainable, indicating potential margin pressures in the future.
Q & A Highlights
Q: Can you provide details on the US revenue trajectory, particularly regarding Advair, lanreotide, and Revlimid, and the expected product launches in the US? A: Revlimid's revenue is stable quarter-on-quarter. Advair has not yet launched, with a planned launch in the second half of FY26. Draxxin is expected to launch a few months after approval. Delays are due to regulatory clearances. The full-year basis of Abraxane, Advair, and a partnered inhalation asset is expected to offset the reduction in generic Revlimid revenue.