Pharmaceutical major Cipla delivered a remarkable performance in the first quarter of FY24. Their consolidated net profit surged by 45.1%, reaching ₹995.7 crore compared to ₹696.4 crore in the same quarter last year.
The company’s revenue in Q1FY24 also seen significant YoY growth, rising by 17.7% to ₹6,328.9 crore from ₹5,375.2 crore in the previous year. This increase was primarily driven by strong performance in India, the US, and South Africa. Especially, its US business achieved an all-time high revenue of $222 million, marking a staggering 43% YoY growth.
In a statement, Cipla credited its pipeline and execution for contributing significantly to this growth.
The South Africa Private Market business achieved 13% YoY growth in local currency terms. Both the prescription and OTC (over-the-counter) segments contributed to this double-digit expansion.
The quarter’s Operating income or EBITDA showed a substantial increase of 30.7%, reaching ₹1,493.9 crore from ₹1,143.4 crore in the previous year. This led to an improvement in the EBITDA margin, rising by 230 basis points (bps) to 23.6% from 21.3% YoY.
Cipla continued to invest in Research & Development, with a 27% YoY increase, amounting to ₹349 crore or 5.5% of sales. This investment focused on progressing clinical trials for key pipeline assets and other developmental efforts.
All of its business segments performed well in the Q1.
Ever since the results were out, the stock has been performing well. On Thursday, Cipla’s share price closed 9.63% higher at ₹1,171.45 apiece on the NSE.
Overall, Cipla demonstrated a strong financial performance and promising growth across its various business segments.