Cipla Q2 earnings beat street estimates; profit spikes 38% to Rs 662 crore, India sales up 17%

Pharma major Cipla on November 6 reported better-than-expected earnings on all counts for the quarter ended September 2020, with profit rising 37.8 percent year on year.

Consolidated profit increased sharply to Rs 661.8 crore during the quarter, compared to Rs 480 crore in the same period last year, backed by strong operating and topline performance.

Consolidated revenue from operations grew by 14.6 percent to Rs 5,038.3 crore during the quarter, with India sales rising 17 percent to Rs 2,090 crore and North America up 10 percent to Rs 1,049 crore.

"India business grew by 17 percent YoY with strong growth across the three businesses and continued servicing of patients with COVID-19 portfolio. US business reported $141 million led by continued traction in new launches," said Cipla in its BSE filing.

South Africa continued momentum across private and tender businesses, driving the growth of 14 percent on a YoY basis in local currency. Private business increased by 9 percent YoY and tender business by 28 percent YoY in local currency terms for the quarter, it added.

Find All Earnings Related News Here

At the operating level, consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) jumped 29.4 percent to Rs 1,176.6 crore and margin expanded 260 bps Yoy to 23.3 percent in Q2FY21.

"The performance reflects strong demand backed by resilient operations management. The quarter also saw sustained focus on cost optimisation which helped deliver an EBITDA margin of over 23 percent. Our businesses in South Africa, the US and other international markets maintained the growth momentum with strong traction in the base business and new launches," Umang Vohra, MD and Global CEO said.

Numbers were ahead of analysts' estimates. Profit was estimated at Rs 573 crore on revenue of Rs 4,645 crore and EBITDA was expected at Rs 1,016 crore with margin at 21.6 percent for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.