Cipla Ltd is one of the leading Indian pharmaceutical company. It was incorporated in the year 1935. The company primarily focuses on its complex generics business and deepening its product portfolio across the globe. The product portfolio of the company includes around 1,500 products under therapeutic segment. The key areas of the company include Respiratory, Anti-retroviral, Urology, Cardiology and CNS segment. Cipla is the 3rd largest pharmaceutical company in India. In South-Africa, it is 3rd in terms of the private market.
Financial for the year 2017-18:
1. Revenue from operations was flat, down by 2% YoY from Rs. 4028 crores in Q2FY19 to Rs. 4012 crores in Q2FY18. It increased by 2% on a QoQ basis.
2. Revenue from Indian business in Q2FY19 was flat at Rs. 1644 crores on a YoY basis. Domestic business grew by 6% in this quarter. The company, in its Domestic business, is rebalancing the acute therapy products; chronic segment outperformed the market growth in this quarter it grew over 21%.
3. North America’s business grew by 22.7% on the YoY basis it stood at Rs. 758 crores. In terms of USD North America’s business growth was up by 12.5% YoY basis at USD 108 million. The growth in the US business was driven by new product launches and in this quarter the company received 7 ANDA approvals from USFDA including Atazanavir, Diclofenac gel and Albendazole. They have filed 5ANDA in this quarter. It grew also due to limited competition products in the US ramped up.
4. Revenue in Europe business declined by 7% on YoY basis stood at Rs. 141 crores. The decline was due to the high base in H1FY19 and also certain sales related issues Rs. 100 crores of business were impacted. This business has higher margin products which decreased the profitability and the company expects this to continue for 2-3 quarters.
5. Revenue in South Africa, Sub-Saharan and Cipla global Access Business i.e SAGA declined on the YoY basis by 18% to USD 754 mn. In SAGA, South Africa fell by 11.1% to USD 72 mn. Excluding South Africa, SAGA business was down by 42.9% at USD 36mn
6. Revenue from Active Pharmaceutical Ingredient (API) business fell by 19% YoY at Rs. 171 crores in this quarter
7. Emerging Markets Revenue in Q2FY19 was Rs. 472 crores as compared to Rs.454 crores in Q2FY18 it increased by 4% on YoY basis.
8. EBITDA was 18.8% of the sales; it stood at Rs 753 crores down by 8% as compared to Rs 804 crores. On a quarterly basis, it increased by 4%. EBITDA Margin in this quarter was 17.5%, down by 220bps vs 19.7% in the previous year.
9. Profit after Tax declined by 11% YoY stood at Rs. 377crores in Q2FY19 vs. Rs. 423 crores in Q2FY18.