Cipla (CIPLA) Q2 24/25 earnings summary

Executive summary

• Achieved highest-ever quarterly EBITDA margin at 26.7%, with EBITDA growth outpacing 9% year-on-year revenue growth, despite seasonal headwinds in India and supply issues in North America.

• Q2FY25 revenue reached INR 7,051 crore, up 9% year-over-year, with PAT at INR 1,303 crore, up 17% year-over-year.

• Chronic therapies in India improved to 61.5% of mix, outpacing market growth; consumer health posted 20%+ growth.

• North America revenue reached $237 million, impacted by temporary lanreotide supply constraints; four new US generic approvals received.

• South Africa and North Africa showed strong performance, with One Africa business up 22% and EMEU region delivering 18% growth in USD terms.

Financial highlights

• Quarterly revenue was INR 7,051 crore, up 9% year-on-year, driven by India, North America, South Africa, and EMEU.

• EBITDA margin at 26.7%, up 70 bps YoY; PAT at INR 1,303 crore (18.5% of sales); effective tax rate 27%.

• R&D spend at INR 385 crore (5.5% of revenue), up 2% YoY.

• Net cash position of INR 7,950 crore as of September 2024; debt including lease liabilities at INR 461 crore.

• Dividend payout of over INR 1,000 crore during the quarter.

Outlook and guidance

• Margin guidance for FY25 maintained at 24.5%-25.5% EBITDA.

• Expect recovery in India acute and respiratory segments in Q3, aiming to outpace market growth for the full year.

• Lanreotide supply issues expected to resolve by end of Q3, with sharp recovery in Q4.

• Key launches (generic Advair, Abraxane) dependent on regulatory clearances; Advair launch expected H1 FY26.

• Management expects a favorable outcome in ongoing NPPA litigation; no provision made for ₹2,011 crore demand notices.