InvestorQ : How do you view the latest results announced by pharma major Cipla for the Sep-20 quarter?
Arya Nanda made post

How do you view the latest results announced by pharma major Cipla for the Sep-20 quarter?

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Anjana Aiyar answered.
3 weeks ago
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Cipla, one of India’s largest pharma companies, reported substantially better-than-expected earnings on the top line and the bottom line for the quarter ended Sep-20. This was much better than street expectations.

Net profits for the quarter were up by 37.8% on a yoy basis for the Sep-20 quarter at Rs.661.8 crore backed by strong top line performance. The total sales revenues from operations were up 14.6% at Rs.5038 crore in the Sep-20 quarter.

During the quarter, the India sales revenues were up by 17% at Rs.2090 crore while the overall North America business was up 10% at Rs.1049 crore. One of the big advantages that Cipla has is that it is still a major play on the Indian market rather than be US dependent like most of the pharma companies based on the original generics outsourcing formula.

Cipla reported earnings before interest, tax, depreciation and amortisation or EBITDA at 29.4% higher at Rs.1177 crore while the EBITDA margins expanded by a whopping 260 basis points on a yoy basis to 23.3% in the second quarter.

Cipla also displayed sustained focus on cost optimisation which helped deliver an EBITDA margin that was way above previous quarters. In addition, the businesses in South Africa, the US and other international markets managed to sustain its growth momentum.

Even the fast growing European operations of Cipla reported 24% growth dollar terms on the back of strong performance in key markets. With Remdesivir supplies commencing in multiple emerging markets, the momentum is favorable. In addition, the company reported that the active pharma ingredients or API business grew 15%

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