- 27 Jan 2022
- ICICIdirect Research
Cila reports strong traction in domestic and USCIPLA - 969 Change: 3.85 (0.40 %)
News: Revenues grew 6% YoY to Rs.5478.9 crore led by 12.9% YoY growth in domestic formulations to Rs.2518 crore due to sustained volume traction in flagship brands. US grew 8.8% YoY to Rs.1124 crore owing to momentum in core products and traction for respiratory portfolio. South Africa business grew 7.8% YoY to Rs.623 crore while RoW market declined by 6.3% YoY to Rs.1008 crore. API was down 25.4% YoY to Rs.150 crore amid momentary slowdown in orders from developed market. EBITDA margins was down 135 bps YoY to 22.5% while EBITDA was flat YoY at Rs.1231 crore. Subsequently, adjusted profit was down 2.6% YoY to Rs.728.6 crore.
Views: Cipla’s Q3FY22 revenues was in line with I-direct estimates driven by strong traction in One-India and US business while margin profile was better than anticipated mainly due to lower other expenditure. We continue to focus on the management’s long-drawn strategy of targeting four verticals viz. One-India, South Africa & EMs, US generics & specialty and lung leadership. FY21 launch of Albuterol sulphate (Proventil HFA) amid rise in demand for Albuterol products in the ongoing Covid-19 pandemic along with approval for first peptide asset, Lanreotide injection to strengthens Cipla’s complex generics presence. While US focus will be on specialty including hospitals, value accretive generics, India focus will be on branded (Rx), trade generics (TGx). On the Africa front, Cipla continues to rebase its business model towards private business in the backdrop of shrinking tender opportunities