Cipla Q2 results: Net profit rises 7% to Rs 711 cr, revenue up 10%

Drug maker Cipla on Tuesday reported a 7 per cent year-on-year rise in its consolidated net profit at Rs 711 crore during the July-September quarter.
 
The company's revenue from operations grew 10 per cent to Rs 5,520 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) rose 4 per cent to Rs 1,226 crore. EBITDA margin for the quarter stood at 22.2 per cent.
 
Revenue from India operations grew 16 per cent to Rs 2,416 crore, led by sustained volume traction across core therapies and COVID-19 portfolio contribution normalising in-line with expectations, the company said in a release.
 
The South Africa, sub-Saharan Africa and global access (SAGA) grew 8 per cent YoY in dollar terms, with continued market beating growth in South Africa.

The US business reported a multi-quarter high revenue of $142 million, with steady momentum in core products offsetting price erosion in rest of the portfolio. Meanwhile, the international markets grew 14 per cent YoY in dollar terms.
 
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The company said its research and development expenses stood at Rs 274 crore and its priority projects spends are on track. It also prepaid $137.5 million outstanding InvaGen acquisition debt during the quarter. Cipla said it continued its net cash positive position at the end of September quarter.
 
The company said its FY22 priorities include maintaining growth momentum in the large branded and unbranded generic franchises of India and South Africa, and to augment consumer wellness franchise; ensuring Covid portfolio availability, and maximising patient reach.
 
"In India, we continue to drive strong performance led by sustained volume traction despite a high FY21 base. Our collaboration with Eli Lily for their diabetes products helps us further strengthen our endeavour of creating access to innovative medicines in-line with the One-India strategy," Cipla CEO and MD Umang Vohra said.
 
Shares of Cipla closed 0.60 per cent higher at Rs 907.30 on the BSE on Tuesday.

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