Cipla said it is confident about ending FY24, with 23-23.5% earnings before interest, tax, depreciation and ammortisation (EBITDA) margins and 10% odd revenue growth, led by robust sales growth across key geographies of US, India and South Africa. The company also said it is seeing stabilisation of price erosion in the US market along with moderation of logistics and raw material costs to boost margins. The company said in the US market it will maintain a quarterly revenue rate of $210-$215 million for US business.
Cipla on Wednesday reported a 45.1% year-on-year (YoY) jump in net profit to Rs 996 crore in the quarter ended June 30, 2023, led by sales growth across key geographies of US, India and South Africa. The company reported a net profit of Rs 686 crore during the corresponding quarter of the previous year. Revenue from operations rose 17.7% YoY to Rs 6329 crore compared to Rs 5375 crore.
The earning before interest, tax, depreciation and ammortisation (EBITDA) rose 31% YoY to Rs 1,494 crore. The EBITDA margin expanded 230 basis points to 23.6%. The US business reported the highest ever revenue of $222 million from the US and 43% YoY growth driven by robust momentum in differentiated portfolios.
The tapering of price erosion and continuous ramp up of generic anti-cancer drug lanreotide and generic revlimid, along with good traction in base business have helped Cipla's US business. The US contributes about 29% of Cipla's business. The India business that 44% contributes grew 12% YoY to Rs 2,772 crore led by sustained momentum across therapies in core portfolio driven by pricing and new launches.
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