- 27 Jan 2023
- ICICIdirect Research
Cipla misses on topline but upbeat on margins front
News: Revenues grew 6% YoY to Rs 5810 crore driven mainly by US . Gross Margins increased by ~462 bps over previous year to 65.5%. EBITDA margins increased 176 bps YoY to 24.2%, due to lower logistic costs and effective cost management. Adjusted PAT increased 9.9% YoY to Rs 801 crore. US business grew ~42% YoY to Rs 1600 crore (I-direct estimate Rs 1399 crore) the growth was driven by the launch of gRevlimid and continued market share expansion in Lanreotide 505b2.India business witnessed YoY growth of just 1.8% to Rs 2563 crore (I-direct estimate Rs 2820 crore). However, after adjusting Covid base the growth was at 11% driven by sustained momentum across respiratory, cardiac, anti-diabetic in core portfolio
Views: Cipla numbers missed our expectations on the revenue front but were upbeat on margin front. India business continued its strong performance on the back of strong growth across all therapies but missed our expectations. US business performed well driven by solid execution on differentiated portfolio in the US including the launch of gRevlimid. South Africa private market recovery is on track and has grown in double digits
Impact: Positive