Cipla reported mixed set of numbers wherein revenues were in line, gross margins were better than estimates but EBITDA margins were missed due to higher other expenditure.
Q4FY23 Earnings Summary
Revenues grew 9.1% YoY to Rs 5,739 crore (I-direct estimate Rs 5908 crore) driven mainly by US business
US business grew ~39% YoY to Rs 1675 crore (I-direct estimate Rs 1451 crore) the growth was backed by expansion in share of differentiated and complex products
India business witnessed YoY growth of just 3.5% to Rs 2259 crore (I-direct estimate Rs 2510 crore). However, after adjusting for covid base the growth was at 16% driven by sustained momentum across gastro intestinal, respiratory, cardiac and anti-diabetic in core portfolio
South Africa de-grew -6.8% YoY at Rs619 crore (I-direct estimate Rs 564 crore)
APIs witnessed YoY de-growth of 2.2% to Rs 134 crore
Gross margins increased by 486 bps over previous year to 64% (I-direct estimate 63%)
Adjusted PAT increased 59.3% YoY to Rs ~654 crore (I-direct estimate 813.1 crore)
ICICIdirect Research view on Cipla Ltd Stock
Views: Adjusted for Covid base (we didn’t consider this in our assumption), India business continued its strong performance on the back of strong growth across all therapies. US business performed well driven by solid execution on differentiated portfolio in the US including strong market share ramp-up with Lanreotide. Strong demand continues with overall South Africa private business growing faster than the market. We remain positive on the growth story specially relying on the new complex launches in U.S and continuing momentum in Domestic branded formulations.
Impact: Positive
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