Image Source: Business Today
The pharmaceutical giant Cipla announced on November 4 that its consolidated net profit for the quarter ended in September increased by 10.9 percent year over year to Rs 788.9 crore, exceeding the market consensus of Rs 771.3 crore.
The pharmaceutical company’s consolidated income from operations increased by 5.6 percent year over year to Rs 5,828.4 crore, exceeding analysts’ predictions of Rs 5,723.9 crore.
“Our Q2FY23 performance reflects strong momentum in One-India business and solid execution on differentiated portfolio in the US,” said Global Chief Executive Officer Umang Vohra in a press statement.
An improved performance in the North America business in the September quarter led to the company’s topline above expectations.
Cipla’s North American operations had a year-over-year increase in sales of 25% to $179 million, much exceeding analysts’ expectations of $170 million.
“Growth driven by successful launch of Lenalidomide and continued market share expansion in Lanreotide,” Cipla said in an investor presentation.
The domestic market did well as well, with revenues increasing by 6% annually to Rs 2,563 crore. Sales in India increased by 15% year over year, according to Cipla, omitting the contribution of COVID-19 therapy medications from the prior quarter.
The lack of the COVID-19 virus in the nation during the third quarter of September helped prescription sales used to treat seasonal illnesses soar, which benefited the domestic economy.
Sales in the South African division fell 19.4% year over year to $62 million, mostly due to the quarter’s decline in the value of the South African rand relative to the US dollar.
With consolidated operational profit increasing 6% year over year to Rs 1,302 crore, Cipla’s operating performance was in line with Street’s estimate.
Cipla’s margin increased by 13 basis points year over year to 22.3 percent during the reporting quarter, which was in line with Wall Street expectations.
According to Cipla, its investments in R&D accounted for 5.8% of revenues in the September quarter, an increase of 22% year over year, driven by ongoing clinical studies on a respiratory asset and other developmental initiatives.
Shares of Cipla closed at Rs 1,146.1, down 1.3 percent, on the National Stock Exchange.
