Cipla shares trade 1% lower ahead of Q3 earnings; 5 key things you need to know

For the quarter ended September 30, 2024 (Q2 FY25), the company reported a 17% increase in consolidated net profit to ₹1,303 crore for the second quarter, driven by robust sales across markets.

The company had reported a net profit of ₹1,115 crore in the July-September quarter of the last fiscal.

Its total income from operations rose to ₹7,051 crore in the second quarter compared to ₹6,490 crore in the year-ago period, Cipla said in a regulatory filing.

"In Q2 FY25, we recorded a revenue growth of 9% over the last year with the highest-ever EBITDA margin of 26.7% driven by mix and other operational efficiencies," Cipla MD and Global CEO Umang Vohra said.

The company's 'One-India' business was impacted during the quarter due to a changed seasonal pattern. However, key chronic therapies in the branded prescription business continued to grow faster than the market, Vohra added.

The company's consumer health business grew at a strong 21% year-on-year (YoY), Vohra added.

"With our concentrated focus on the differentiated portfolio, the US business posted a revenue of $237 million. In South Africa, we recorded solid growth of 22% YoY in local currency terms, led by the private market," Vohra noted.

Emerging Markets and Europe delivered a robust revenue growth of 18% on the back of a deep market focus strategy, Vohra added.

"Going ahead, the focus will be on growing our key markets, further building our flagship brands, investing in the future pipeline, as well as focusing on resolutions on the regulatory front," the MD added.

Cipla launches mobile app

Early in January 2025, Cipla launched a mobile application designed to enable the first line of screening for asthma in India.

"By leveraging the power of next-gen technologies, we are developing solutions that are fundamentally transforming patient care and enabling better diagnostic, treatment, and management outcomes," Cipla Managing Director & Global CEO Umang Vohra said in a statement.

The mobile application CipAir will be available on Android and will be subsequently rolled out on iOS devices, the company stated.

According to the Global Burden of Disease report, the total burden of asthma in India is estimated to be around 34.3 million.

India has a three-fold higher mortality rate and a two-fold higher asthma-associated disability burden compared to the global proportion.

Cipla receives approval for Afrezza inhalation powder

Afrezza, a product created and manufactured by MannKind Corporation (MannKind) USA, is used to improve glycemic control in adult patients with diabetes mellitus.

Afrezza is a rapid-acting insulin delivered through an inhaler compared to current insulins, which are given as injections.

Promoters exit Cipla

Besides, in another development, in December 2024, Samina Hamied and Rumana Hamied, promoters of drug major Cipla, exited the pharmaceutical company by selling their 1.72% stake for ₹2,111 crore through open market transactions.

The Singapore government, Societe Generale, Abu Dhabi Investment Authority, BNP Paribas, BofA Securities, Citigroup, Morgan Stanley, Goldman Sachs, Norges Bank, UBS, and Copthall Mauritius bought stakes in Cipla.

After the stake sale, the combined promoter and promoter group holding in Cipla has come down to 29.2% from 30.92%.

Samina and Rumana are nieces of Y K Hamied—the non-executive chairman of Cipla.

₹1 crore fine

In yet another development, in December, Cipla said a fine of over ₹1 crore was imposed on the company by the GST authority for an alleged inadmissible credit claim.

The company has received an order dated December 18, 2024, passed by the GST authority, imposing a penalty of ₹1,11,94,324 under applicable provisions of the Central Goods and Services Tax Act, 2017, Cipla said in a regulatory filing.

"The order has been passed by the GST Authority on the contention that the company has availed inadmissible TRAN-1 credit. The GST Authority has ordered the recovery of the same along with applicable interest and penalty," it added.

Shares of Cipla have gained nearly 4% in the past 12 months.