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Cipla FY20 profit grows to Rs 1,546 crore; COVID-19 hits supply chain in March

Cipla's net profit during the March quarter of FY20 took a beating on account of the coronavirus pandemic. The company posted a 33 per cent decline in consolidated net profit during the quarter ended March 2020

twitter-logo BusinessToday.In        Last Updated: May 15, 2020  | 21:04 IST
Cipla FY20 profit grows to Rs 1,546 crore; COVID-19 hits supply chain in March

Cipla reported an increase of 1.23 per cent in net profit for the full financial year ended March 31, 2020. The pharmaceutical major posted consolidated net profit of 1,546.52 crore at the end of financial year 2019-20, as against Rs 1,527.70 crore for the previous financial year.

Total revenue from operations grew 5 per cent during FY20 to Rs 17,132 crore, from Rs 16,362 crore in FY19. Cipla's Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) increased 2 per cent to Rs 3,230 crore from Rs 3,171 crore during the fiscal under consideration. EBITDA margin for the financial year stood at 19 per cent.

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Cipla's net profit during the March quarter of FY20 took a beating on account of the coronavirus pandemic. The company posted a 33 per cent decline in consolidated net profit during the quarter ended March 2020 to Rs 246 crore, as opposed to Rs 367 crore in previous fiscal's corresponding quarter.

"Due to COVID-19 situation, there have been several restrictions imposed by the governments across the globe on the travel, goods movement and transportation considering public health and safety measures, which had some impact on the Group's supply chain during March, 2020. The Group is closely monitoring the impact of the pandemic on all aspects of its business, including how it will impact its customers, employees, vendors and business partners," Cipla said in a regulatory filing.

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The company saw revenue from operations slip slightly, by 1 per cent, to Rs 4,376 crore during Q4 FY20, from Rs 4,404 crore in Q4 FY19. Company's EBITDA, however, declined 33 per cent during the quarter under review to Rs 652 crore from Rs 972 crore reported in the corresponding quarter of the previous fiscal. EBITDA margin for the March quarter stood at 15 per cent, which was impacted 200 bps due to COVID-19 cut-off.

"As the world endures the unprecedented COVID-19 pandemic, our foremost focus has been on safeguarding our employees and ensuring wellbeing of our patients. Our key markets continued to demonstrate strong growth momentum in the quarter. As a 'new world' dawns post the pandemic, Cipla continues to uphold its pioneering legacy by reimagining healthcare and reinventing the ecosystem; all keeping the patient care at the core," said Cipla CEO Umang Vohra.

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