CIPLA Ltd –
Q4 FY 24 results and concall highlights –
Revenues – 6163 vs 5739 cr, up 10 pc YoY
EBITDA – 1316 vs 1174 cr ( up 13 pc YoY, margins @ 21 vs 20 cr )
PAT – 932 vs 522 cr
R&D spends @ 444 cr, @ 7.2 pc of sales
Segment Wise revenue break up –
India – 2417 cr, up 7 pc
North America – 1876 cr, up 11 pc
South Africa – 560 cr, up 26 pc
EMs – 830 cr, up 5 pc
APIs – 190 cr, up 40 pc
Total Debt @ 560 cr
Cash on books @ 8270 cr. Company is open to inorganic growth initiatives
Investments made in FY 24 –
Acquired Actor Pharma in South Africa for 400 cr. It has a portfolio of branded generics and OTC brands in SA
Got into a marketing and distribution partnership with SANOFI to distribute 06 of their CNS brands in India
Acquired OTC brand portfolio of IVIA beauty and Astaberry in India for 130 cr
Company has 21 brands ( branded generics ) in top 300 brands in IPM. These brands have a turnover > 100 cr each
Company has a booming Speciality – InLicensing business with FY 24 sales @ 761 cr. Last 5 yr CAGR here has been @ 39 pc
In addition, company has 5 OTC brands with sales > 100 cr / yr. These are – Omnigel, Nicotex, Prolyte ORS, Cipladyne, Cofsils
North American product pipeline –
Respiratory pipeline – 05 assets filed assets in last 12 months. Going to file 02 more assets in next 12-15 months. Major launches expected in next 12-15 months
Peptides and Complex generics – 12 assets already filed. Going to file 08 more assets in next 1-2 yrs. Multiple launches expected over FY 25-27
505(b)(2) assets – have filed 02 assets. Launches expected in next 1-2 yrs
Company has reached no 1 spot in the prescriptions business in SA
In India, Chronic portfolio’s share is now at 61 pc. Chronic business has a far superior gross margin profile vs Acute business
Company has hit 20 pc mkt share in Lanreotide
( injectable peptide – a 505(b)(2) products )and 13 pc Mkt share in Albuterol ( complex generic – inhaler ) mkt
Guiding for an EBITDA margin band of 24-25 pc for FY 25
30 pc of company’s total revenues come from Respiratory products
Company has set up a manufacturing facility in China. Have got US FDA approval for the same. Have spent aprox 430 cr to set up that facility. Also looking to penetrate / expand into the Chinese market
Company is likely to see 2 more years of strong Revlimid sales ie FY 25, 26
Company’s Pitampur and Goa plants are yet to resolve their USFDA issues ( warning letters ). Once company resolves these regulatory issues, there could be significant bump up in the US business ( company expects Goa resolution and commencement of supplies only towards the end of FY 25 )
R&D expenses to continue to remain in the band of 6-7 pc of revenues
Disc: holding, biased, not SEBI registered, not a buy/sell recommendation
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