InvestorQ : How did you find the results of Cipla for the Dec-20 quarter?
Aashna Tripathi made post

How did you find the results of Cipla for the Dec-20 quarter?

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Dinesh C Nagpal answered.
4 months ago
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Cipla reacted -ve ly to its Q3 noes today. Technically speaking it has good support between 750-770 for further continuation of uptrend. If it breaks that then a downward further projection till 675 and lower would become a likely scenario
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Aditi Sharma answered.
4 months ago
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Pharma has had a good time this quarter with Cipla also reporting robust numbers as the Q3 PAT doubled to Rs.752 crore for the Dec-20 quarter on yoy revenue booster. Cipla has held an edge over the last few years as it had a strong India franchise and, unlike other players, it is not overly dependent on the US, UK and European markets.

In terms of the top line, Cipla reported 18.25% growth in revenues for the Dec-20 quarter on consolidated basis at Rs.5,169 crore. This is one of the best growth rates among large pharma companies till date in the third quarter and the company witnessed growth in its core pharmaceuticals vertical and also in its smaller new ventures vertical. Cipla witnessed growth in Indian as well as global operations.

Operating profits for the Dec-20 quarter grew by 104% to Rs.982 crore due to which the operating margins expanded sharply from 10.99% in Dec-19 quarter to 19.01% in Dec-20 quarter. This big growth in operating margins was largely on account of cost control measures initiated during the peak COVID season.

Profit after tax (PAT) for the Dec-20 quarter grew 121% at Rs.752 crore as the operational edge of the company combined with effective cost controls measures during COVID-19 pandemic helped boost the level of net profits substantially. As a result, net profit margins nearly doubled from 7.76% in Dec-19 quarter to 14.54% in the Dec-20, a visible expansion.

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