Cipla Q1 net profit rises 6% to Rs 478 crore

Cipla reported net income from operations for the three-month period under review at Rs 3,894.46 crore, as against Rs 3,845.84 crore during the year-ago period

Pharma major Cipla saw its consolidated net profit rise by almost 6 per cent during the June quarter to Rs 478.19 crore. The company had posted a profit of Rs 451.25 crore during the year-ago period.

Cipla reported net income from operations for the three-month period under review at Rs 3,894.46 crore, as against Rs 3,845.84 crore during the year-ago period. The total revenue for Q1FY20 was Rs 3,989.02 crore, in comparison to Rs 3,938.99 crore seen during Q1FY19.

The company reported EBITDA (Earnings Before Interest, Tax, Depreciation and Amortisation) of Rs 905 crore for the June quarter, 25 per cent higher than what was reported during the corresponding quarter last year. The EBITDA percentage was 22.7 per cent.

"The paid-up equity share capital stands increased to Rs 161.17 Crore (80.58 crore equity shares of Rs 2 each) upon allotment of 1.27 lakh equity shares of Rs 2 each pursuant to "ESOS 2013-A" during the quarter ended June 30, 2019," Cipla said in a regulatory filing.

"We witnessed a muted first quarter in FY20 owing to a combination of external volatility and some conscious business decisions taken with the long-term sustainability in mind. Our secondary growth in our flagship therapies in India and in the South Africa private market remained impressive, and our base business in the US saw y-o-y growth with increased revenue from recent high-value launches," said Cipla MD and Global CEO Umang Vohra.

"Our business fundamentals remain strong, and our overall base business profitability was maintained at healthy levels despite the volatility. Our growth drivers remain on track with sustained expansion of our basket of biosimilars in emerging markets, entry into new markets such as China to set up our respiratory franchise, and further depth in our U.S. specialty pipeline with ZEMDRI," Vohra further added

Morevoer, Cipla Ltd signed a definitive agreement to acquire the minority stake of Eight Roads in Cipla Health Limited (CHL). Eight Roads had acquired minority ownership in CHL through two rounds of investment in April 2016 and August 2018. The latest deal will grant Cipla Ltd 100 percent ownership interest of CHL.

Cipla shares closed at Rs 519 on BSE, registering a gain of 18.80 points or 3.76 per cent, after making an intraday high of Rs 525.05 (4.97 per cent).