Cipla's topline increases by 24.76 per cent in Q2FY16 on yearly basis

Cipla declared its Q2FY16 results yesterday. The company's revenue declined by 10.39 per cent to Rs 3452 crore in Q2FY16 as compared to the previous financial year. Its total expenditure decreased by 5.36 per cent to Rs 2663 crore in Q2FY16 on quarterly basis. Cipla's total expenditure decreased mainly due to a 14.54 per cent reduction in raw material prices, 8.68 per cent reduction in other expenses and 5.54 per cent reduction in employee cost during the quarter.

Cipla's EBITDA decreased by 24.02 per cent to Rs 789 crore in Q2FY16 as compared to previous quarter. The company's EBITDA margin contracted by 410 basis points to 22.87 per cent in Q2FY16 on quarterly basis. The net profit of the Cipla decreased by 33.72 per cent to Rs 431 crore in Q2FY16 as quarterly basis. The company's net profit margin contracted by 440 basis points to 12.49 per cent in Q2FY16 as compared to previous quarter.

On yearly basis, Cipla's revenue increased by 24.76 per cent to Rs 3452 crore in Q2FY16 as compared to the same period in previous financial year. Its EBITDA boosted by 41.36 per cent to Rs 789 crore in Q2FY16 on yearly basis. Cipla's EBITDA margin expanded 269 basis points to 22.87 per cent in Q2FY16 as compared to the same period in the previous financial year. The company's net profit rose by 44.38 per cent to Rs 431 crore in Q2FY16 on yearly basis though its tax expense rose by 79.98 per cent to Rs 181 crore during the quarter. Its net profit margin expanded by 170 basis points to 12.49 per cent in Q2FY16 on yearly basis.

Cipla's domestic sales grew by 0.9 per cent to Rs 1262 crore during Q2FY16 on yearly basis. The company's International business of formulations increased by 51.3 per cent to Rs 1874 crore during Q2FY16 from Rs 1239 crore during Q2 FY15. Its exports of APIs increased by 61 per cent to Rs 226 crore during Q2FY16 on yearly basis.

Cipla has 40 approved ANDAs, 32 marketed products, and 30 pipeline products are expected to be approved over the next 4 years. InvaGen has filed 5 first-to-file products which represent a market size of USD 8 billion in revenue by 2018. It established Joint venture with Biopharm SPA in Algeria and Cipla will hold 40 per cent stake in the company. Cipla's new capacity build underway for ARV products and expected completion in H1FY17. The company has more than 200 formulation development projects underway. Its formulation filings as North America (4), Europe (19), International (792).

Cipla's FII holdings expanded by 422 basis points to 22.51 per cent while DII holdings contracted by 428 basis points to 11.73 per cent during the September 2015 quarter. The company's share price increased by 2.05 per cent on bourses in early trades and is trading at Rs 658.7 on intraday basis.

Cipla is a global pharmaceutical company. The company's portfolio includes over 1500 products in various therapeutic categories with one quality standard globally. In a tightly regulated environment, the company’s manufacturing facilities have approvals from all the main regulators including US FDA, UKMHRA, WHO, MCC, ANVISA, and PMDA which means the company provides one universal standard both domestically and internationally.