Cipla Q2 net profit falls 35% to Rs 878 crore, revenue dips 2%

Mumbai-based drugmaker Cipla reported a 35% year-on-year decline in consolidated net profit to Rs 878 crore in the second quarter ended September, while total income from operations fell 2% to Rs 7,404 crore, amid a decline in the company’s North American sales and lower contributions from its API and other businesses.

EBITDA declined 27% to Rs 1,388 crore from Rs 1,895 crore a year earlier, with the operating margin contracting to 18.7% from 25% in the corresponding quarter a year ago.

However, on a sequential basis the margin expanded 200 basis points, while revenue rose 4% over the April-June quarter.


India remained the company’s strongest growth market, with revenue from its domestic business, including prescription medicines, trade generics and consumer health, rising 12% year-on-year to Rs 3,516 crore. The branded prescription business recorded market growth of 15%, with respiratory, urology, cardiac, anti-diabetes and dermatology therapies registering strong double-digit growth, according to a company announcement on the stock exchange.

North American revenue fell 19% to Rs 1,643 crore, although it improved by $10 million from the previous quarter to $172 million. Cipla said its US business continued to grow sequentially and expects its upcoming product pipeline to support performance.

“We expect North America performance to remain supported by our upcoming product pipeline,” said Achin Gupta, MD & Global CEO of Cipla. He added that the company remained focused on sustained growth, productivity and pipeline development.

The company received US Food and Drug Administration approval for generic Advair Diskus, marking the first dry powder inhaler approval from its US manufacturing network. It also entered an exclusive partnership with Qilu Pharmaceutical to commercialise a biosimilar of cancer drug Keytruda.

Revenue from the One Africa business declined 1% to Rs 1,171 crore. South Africa private market business continued to outperform the market, growing approximately 1.3x faster than the market.