Cipla limited established a brilliant performance in the June quarter (Q1FY22). This was followed by a 68.5% growth in domestic sales that comprised almost half of the total sales.
The US region that endows nearly one-fifth of its total revenue witnessed a stable performance. The contribution from respiratory inhaler Albuterol generics continues to render market gains at set rates. The firm accounted for the 5% year-on-year (y-o-y) development in US revenues to the recurring market share of Albuterol.
Cipla’s sales in the geographical landscape of South Africa, Sub-Saharan Africa and Global Access (SAGA) region attributed to 13% y-o-y growth as per USD. This area contributed to nearly 15% of total revenues. The company said that experienced a double-digit growth and market share profit in the Antiretroviral and oncology private market. It also rose to three places to third position in the systemic anti-infectives private market.
Cipla’s total revenue rose over 27% y-o-y to ₹5,453 crore, much higher than the ₹4,606.5 crore in the last quarter. While Ebitda at ₹1,346 crore also accounted for a 28% y-o-y growth, where net profit spiked at 24% y-o-y. Analyst at the Kotak Institutional Equities averred that “Q1FY22 sales and Ebitda exceeded their estimates by 7% and 9%, respectively, led by higher-than-expected domestic sales amid strong traction in the covid portfolio.”
“We expect the covid portfolio to moderate over the near-term, though continued roll-out of the respiratory franchisee in the US and strong execution of One India strategy will help drive earnings growth over FY23-24,” said analysts at Kotak Institutional Equities.
Analysts at Motilal Oswal Financial Services Ltd have increased their EPS percentile scale by 6% and 4% for FY22 and FY23, pertaining to the strong traction in prescription and trade generics coming from the domestic formulations segment with prolonged benefits of cost savings and lower research and development expenditure.