Cipla is a global pharmaceutical company with a focus on agile and sustainable growth. The company is headquartered in India and has a strong presence in South Africa, North America, and other key markets. Cipla’s strengths lie in the respiratory, anti-retroviral, urology, cardiology, anti-infective, and CNS segments. The company has 47 manufacturing sites around the world and produces 50+ dosage forms and 1,500+ products. Cipla is ranked 3rd largest in pharma in India, 2nd largest in the pharma prescription market in South Africa, and 3rd largest by prescription in the U.S. Cipla has a long history of making a difference to patients.

Result Analysis: Cipla Limited

 (CMP: Rs. 1068.70)

Result Update: Q1FY24

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    Stock Details
    Market Cap. (Cr.) 86262.45
    Equity (Cr.) 161.43
    Face Value 2
    52 Wk. high/low 1185 / 852
    BSE Code 500087
    NSE Code CIPLA
    Book Value (Rs) 290.00
    Sector Pharma


    Key Ratios
    Debt-Equity: 0.04
    ROCE (%): 17.79
    ROE (%): 12.82
    TTM EPS: 39.84
    P/BV: 3.69
    TTM P/E: 26.82

       Result Highlights:

    • Cipla’s 1QFY24 revenue rose 17.7% YoY to ₹6,329cr., driven by superior executions in North America (NA) and domestic formulation (DF) segments.

    • EBITDA margin expanded at a similar rate of 230bps YoY to 23.6%, due to lower raw material costs, superior product mix, and Lower employee costs which were offset by rise in other expenses/R&D in 1QFY24.

    • PAT of the company increased by 41% YoY to ₹ 997cr., driven by lower depreciation costs that were somewhat offset by a rise in the quarter’s tax rate.

    • With the help of the ramp-up in gLanreotide and the growth in market share of important launches, the US company generated highest quarterly revenue. In Lanreotide, CIPLA now holds a +18% market share compared to 17% in Q4FY23. According to management, base business helped US sales climb QoQ while gRevlimid had mostly flat QoQ growth. $205-210 million, compared to $190-195 million, is the expected quarterly run rate. 4-5 peptide launches are anticipated in the upcoming 18 months.

    • Domestic formulation has kept up its market-beating growth, with a largely positive contribution from chronic conditions. added 250 more MRs in Q1, and Q2 is projected to see another 150–200 net additions. CIPLA’s consumer business saw mid-teen margins in the first quarter, while the trade generics sector saw 8% YoY growth.

    • EBITDA margin forecast for FY24 increased to 23% from 22%. Guidance for US quarterly base sales has been raised from US$190-195mn to an estimated US$210-215mn in FY24.

    Financial Performance:

    Shareholding Pattern:

    Particulars (In%) Q1FY23 Q1FY24
    Promoters Group 33.42 33.40
    FIIs 28.84 26.32
    DIIs 21.21 24.29
    Public 15.79 15.49
    Others 0.74 0.50

    Management Commentary:

    Commenting on the June quarter results, Umang Vohra, CEO and MD said, “Our One-India business continued the double-digit trajectory growing at 12% during the quarter led by branded prescription with sustained growth across chronic therapies. Our continued focus on differentiated portfolio has strengthened our US business which once again posted highest ever quarterly revenue at $ 222 Mn. South Africa Private Market bounced back from lows of last year to post a double-digit growth. Our core operating profitability continues to be strong at 23.6% expanding by 230 bps over last year. We are excited to continue working towards establishing a strong foundation for growth in upcoming quarters, where we look forward to continuing the leadership in Chronic Therapies in Branded Prescription business in India, further expanding our differentiated pipeline in the US and targeting to be the biggest prescription business in South Africa.”


    Cipla showed robust growth in Q1FY24. The US’s highest-ever quarterly revenue was fueled by successful new launch execution, base business growth, and strong portfolio differentiation momentum. Cipla reported a positive forecast for the NA business, which was attributed to less competition and, as a result, less price erosion. Additionally, several changes in buying policies have also contributed to the NA segment’s rise. In addition to the branded generics segment’s (DF/South Africa) better-than-industry performance, the prognosis for NA markets has seen a robust comeback. Any approval of the Indore facility and the introduction of Advair and Abraxane might be positive for the company.



    Particulars (In Rs. Cr.) Q1FY24 Q4FY23 Q1FY23 QoQ% YoY%
    Revenue from Operations 6,329 5,739 5,375 10.3% 17.7%
    Other Income 136 135 103 1.2% 31.8%
    Total Income 6,465 5,874 5,479 10.1% 18.0%
    Cost of materials consumed 1,299 1,264 1,523 2.7% -14.7%
    Purchase of Stock-in-Trade 980 782 653 25.3% 49.9%
    Changes in inventories -42 17 -152
    Employee expense 1,067 965 956 10.5% 11.6%
    Other Expenses 1,532 1,537 1,252 -0.4% 22.4%
    EBITDA 1,494 1,174 1,143 27.3% 30.7%
    EBITDA Margin (%) 23.6% 20.5% 21.3% 310 bps 230 bps
    Finance Cost 16 34 18 -52.3% -8.0%
    Depreciation & Amortisation expense 239 346 254 -30.9% -6.0%
    Profit Before Tax (PBT) 1,375 928 975 48.2% 41.0%
    Tax 378 222 268 70.1% 41.1%
    Exceptional Items-incomes/expenditure 0 -182 0
    Profit After Tax (PAT) 997 523 707 90.5% 41.0%
    PAT Margin (%) 15.7% 9.1% 13.1% 660 bps 260 bps
    EPS (in Rs.) 12.34 6.51 8.51 89.6% 45.0%
    Source: Company website, EWL Research

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