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