{"id":155424,"date":"2023-10-27T12:59:20","date_gmt":"2023-10-27T16:59:20","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155424"},"modified":"2023-10-27T12:59:21","modified_gmt":"2023-10-27T16:59:21","slug":"cipla-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/cipla-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Cipla Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Cipla Limited (CIPLA) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Highest ever quarterly revenue of INR6,678 crores, up 15% YoY.<\/li>\n<li>EBITDA margin stood at record 26%.<\/li>\n<li>Profit after tax was INR1,131 crores, about 17% of sales.<\/li>\n<li>Cash balance stood at around INR6,811 crores post dividend payment.<\/li>\n<li>Debt primarily comprises ZAR720 million in South Africa.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Across Core Markets<\/strong>\n<ul>\n<li>Double-digit growth in India, North America and South Africa.<\/li>\n<li>One India franchise grew 10% YoY despite weaker anti-infective sales.<\/li>\n<li>North America delivered highest ever revenue of $229 million, up 28%.<\/li>\n<li>South Africa grew 9% in local currency led by private market and OTC.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Focus on Chronic Therapies<\/strong>\n<ul>\n<li>Share of chronic therapies in India portfolio improved by 140 bps to 60%.<\/li>\n<li>Growth in India driven by branded prescriptions focus on chronic therapies.<\/li>\n<li>South Africa private market growth aided by focus on oncology, CNS and other chronic therapies.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Launches<\/strong>\n<ul>\n<li>Multiple new product launches in India across branded prescription and OTC.<\/li>\n<li>Good traction seen in new launches in South Africa private market.<\/li>\n<li>Progress made on pipeline for North America with focus on complex generics.<\/li>\n<li>Semaglutide oral and injectable launch planned for India market.<\/li>\n<li>Generic Symbicort filing planned from multiple facilities.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Business Growth<\/strong>\n<ul>\n<li>Expects 12% CAGR growth for India business over next few years.<\/li>\n<li>Growth driven by strong performance in key therapies like pediatric, respiratory, urology, anti-infective, cardiac.<\/li>\n<li>Branded prescription business grew around 12% YTD despite muted volume growth.<\/li>\n<li>Cipla aims to increase Albuterol market share to 16-17% by building share for its specific variant.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Business Outlook<\/strong>\n<ul>\n<li>Seeing volume and price improvement in select US products.<\/li>\n<li>Shortage situation in US market preventing price erosion in some products.<\/li>\n<li>Differentiated portfolio now comprises 70-75% of pipeline.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Expansion and Impairments<\/strong>\n<ul>\n<li>Gross margin improvement driven by favorable product mix and pricing.<\/li>\n<li>Chronic portfolio expansion improving margin profile in India.<\/li>\n<li>INR43 crore impairment related to non-operational domestic facility.<\/li>\n<li>Additional impairment due to intangibles write-down for acquired US product.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cipla\u2019s US Albuterol Market Share Trends<\/strong>\n<ul>\n<li>Cipla has seen slight increases in Albuterol share recently after previous declines.<\/li>\n<li>Share gains are incremental over time rather than large deltas.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Lanreotide US Outlook<\/strong>\n<ul>\n<li>Cipla sees scope for incremental gains in Lanreotide like they&#8217;ve seen historically.<\/li>\n<li>The gains don&#8217;t tend to be large deltas but rather creep up slowly over time.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Margin Outlook<\/strong>\n<ul>\n<li>India margins last quarter were highest ever, largely due to favorable mix, not sustainable changes.<\/li>\n<li>More anti-infectives in winter months will likely reduce margins from the highs.<\/li>\n<li>Investment in complex products and new launches may impact mix and pressure margins.<\/li>\n<li>Q4 typically has seasonally lower margins in India business.<\/li>\n<\/ul>\n<\/li>\n<li><strong>South Africa Growth Strategy<\/strong>\n<ul>\n<li>Focus is on growing private market where they are currently #2 and targeting #1.<\/li>\n<li>Growth calibrated for profitability, not just volume gains.<\/li>\n<li>Shift from tender to private market and new OTC launches will drive profitable growth.<\/li>\n<li>Synergies from acquired Actor Pharma portfolio also a source of growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Revlimid Sales Trend<\/strong>\n<ul>\n<li>Revlimid sales have been broadly steady after initial launch period.<\/li>\n<li>Expect similar levels through H2 with no major gains projected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strong Performance Of Subsidiary\/Access Markets<\/strong>\n<ul>\n<li>Sales in subsidiary and access markets (South Africa, sub-Saharan Africa) doubled quarter-on-quarter.<\/li>\n<li>This was driven by growth in QCIL in Uganda, as well as South Africa and other sub-Saharan markets.<\/li>\n<li>However, the growth is not expected to be sustainable long-term as it is tender-driven and lumpy.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Cipla Limited (CIPLA) Q2 FY24 Earnings Concall Financial Performance Highest ever quarterly revenue of INR6,678 crores, up 15% YoY. EBITDA margin stood at record 26%. Profit after tax was INR1,131 crores, about 17% of sales. Cash balance stood at around INR6,811 crores post dividend payment. Debt primarily comprises ZAR720 million in South [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747,5],"tags":[10169,1115],"class_list":["post-155424","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","category-latest","tag-earnings","tag-pharmaceuticals"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":158040,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155424,"position":0},"title":"Cipla Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 25, 2024","format":false,"excerpt":"Key highlights from Cipla Limited (CIPLA) Q3 FY24 Earnings Concall Financial Performance Revenue grew 14% to INR 6,544 crores. EBITDA margin expanded to 26.3% due to favorable mix and pricing actions. PAT grew to INR 1,049 crores or 16% of sales. R&D spend increased 10% YOY to INR 400 crores\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":146171,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q4-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155424,"position":1},"title":"Cipla Limited Q4 FY23 Earnings Conference Call Insights","author":"Praveen","date":"May 15, 2023","format":false,"excerpt":"Key highlights from Cipla Limited (CIPLA) Q4 FY23 Earnings Concall Management Update: [00:05:08] CIPLA said its U.S. business crossed $200 million in 4Q23, growing over 23% from last year, with a focus on pipeline and execution. Q&A Highlights: [00:17:57] Tushar Manudhane at Motilal Oswal asked about the drivers of depreciation\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":156221,"url":"https:\/\/alphastreet.com\/india\/glenmark-pharmaceuticals-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155424,"position":2},"title":"Glenmark Pharmaceuticals Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 15, 2023","format":false,"excerpt":"Key highlights from Glenmark Pharmaceuticals Limited (GLENMARK) Q2 FY24 Earnings Concall Financial Results Revenue increased 6.3% YoY to INR35,879 million. India formulation sales grew 2.8% YoY despite market slowdown. North America sales declined 1.9% YoY. Europe sales increased 58.4% YoY on branded business growth. ROW sales grew 19% YoY across\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":171050,"url":"https:\/\/alphastreet.com\/india\/cipla-q1-fy26-earnings-results\/","url_meta":{"origin":155424,"position":3},"title":"CIPLA Q1 FY26 Earnings Results","author":"Divyansh_Kasana","date":"September 8, 2025","format":false,"excerpt":"Cipla Ltd is engaged in the business of pharmaceuticals, offering a wide range of medicines and healthcare products across multiple therapeutic areas. Presenting below its Q1 FY26 Earnings Results. Q1 FY26 Earnings Results: Revenue: \u20b96,957 crore, up 3.93% year-on-year YoY from \u20b96,694 crore Total Expenses: \u20b95,446 crore, up 3.87% YoY\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"CIPLA Q1 FY26 Earnings Results","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2025\/09\/IP.png?resize=1400%2C800&ssl=1 4x"},"classes":[]},{"id":131066,"url":"https:\/\/alphastreet.com\/india\/cipla-q4-fy2022-research-summary\/","url_meta":{"origin":155424,"position":4},"title":"Cipla Q4 FY2022 Research Summary","author":"sreerupa","date":"July 11, 2022","format":false,"excerpt":"Cipla is an Indian multinational pharmaceutical company. The company was incorporated in the year 1935. The founder is Khwaja Abdul Hamied. Cipla has its headquarters in Mumbai. The company has extended its business worldwide.\u00a0 The presence of this company is marked in Australia, Europe, Kenya, Malaysia, Morocco, Nepal, South Africa,\u2026","rel":"","context":"In &quot;Research Summary&quot;","block_context":{"text":"Research Summary","link":"https:\/\/alphastreet.com\/india\/category\/research-summary\/"},"img":{"alt_text":"Research Summary","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/04\/Research-summary.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":136169,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155424,"position":5},"title":"Cipla Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"November 9, 2022","format":false,"excerpt":"Key highlights from Cipla Limited (CIPLA) Q2 FY23 Earnings Concall Management Update: [00:02:21] CIPLA reported the highest quarterly revenue historically of INR5,829 crores. Q&A Highlights: [00:18:50] Tushar Manudhane from Motilal Oswal asked about the outlook for 2H23 on the GM front and if there is any revision in the EBITDA\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155424","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=155424"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155424\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=155424"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=155424"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=155424"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}