InvestorQ : Why were the profits of Cipla lower in the fourth quarter?
Deepa Salunkhe made post

Why were the profits of Cipla lower in the fourth quarter?

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Arya Nanda answered.
7 days ago
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Cipla reported 14.19% growth in sales at Rs5,260.33 crore but lower profits. FY22 full year sales were up 13.6% at Rs21,763 crore. Among its major initiatives, the core therapies under One-India showed sales growth of 21% while the North American business grew 17% on strong traction growth in across respiratory portfolio and peptide unlocking. Like the global trend, the API business was down -41% yoy as pricing pressures have mounted.

Cipla

Rs in Crore

Mar-22

Mar-21

YOY

Dec-21

QOQ

Total Income (Rs cr)

₹ 5,260.33

₹ 4,606.45

14.19%

₹ 5,478.86

-3.99%

Net Profit (Rs cr)

₹ 362.07

₹ 413.38

-12.41%

₹ 728.60

-50.31%

Diluted EPS (Rs)

₹ 4.48

₹ 5.12

₹ 9.02

Net Margins

6.88%

8.97%

13.30%

  

Net profits for Q4FY22 fell -12.41% to Rs362.07 crore on cost pressures. EBITDA fell -4% at Rs763 crore while EBITDA margins compressed by 279 bps to 14.5%. Input cost pressure was intense. Net margins came in at 6.88% in Q4FY22 quarter compared to 8.97% in Q4FY21. The good news is total debt is down from Rs1,756 crore to Rs824 crore. Cipla has 259 ANDAs and NDAs in its portfolio and its pipeline.

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