Cipla (CIPLA) Q4 21/22 earnings summary

Executive summary

• FY22 revenue reached a record ₹21,763 crore, up 14% YoY; core portfolio growth excluding COVID-19 products was 12%.

• Growth was led by One-India, North America and SAGA; operating profitability remained strong despite higher input costs, strategic inventory and one-time charges.

Financial highlights

• Revenue from operations ₹21,763 crore, up 14% YoY; 5-year CAGR 8%.

• EBITDA ₹4,578 crore, up from ₹4,303 crore; EBITDA margin 21% vs. 22.5% YoY, including one-time COVID-19 inventory provisions, restructuring and other charges.

• PAT ₹2,517 crore, up 5% YoY; PAT margin 11.6% vs. 12.6%, including asset impairments and forex losses on receivables.

• Operating cash flow ₹3,326 crore and free cash flow ₹2,596 crore; net cash position ₹3,909 crore at FY-end.

• Diluted EPS ₹31.17 vs. ₹29.79 YoY; consolidated revenue growth excluding COVID-19 products was 12%.

Outlook and guidance

• FY23 One-India priorities: sustain market-beating growth, raise chronic-therapy mix and deepen patient engagement through digital analytics and data science.

• North America focus: high serviceability, respiratory launches, peptide expansion and high-value complex generics; four complex injectable generics targeted for FY24.

• International markets plan to expand in China and Brazil and build launches in Spain and Mexico, while prioritising stable economies and deeper markets.

• R&D spend expected to increase over the medium term as respiratory, peptide injectable and biosimilar clinical programmes progress.