{"id":158040,"date":"2024-01-25T10:58:52","date_gmt":"2024-01-25T15:58:52","guid":{"rendered":"https:\/\/44.250.171.167\/?p=158040"},"modified":"2024-01-25T11:42:03","modified_gmt":"2024-01-25T16:42:03","slug":"cipla-limited-q3-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/cipla-limited-q3-fy24-earnings-conference-call-insights\/","title":{"rendered":"Cipla Limited Q3 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Cipla Limited (CIPLA) Q3 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Performance<\/strong>\n<ul>\n<li>Revenue grew 14% to INR 6,544 crores.<\/li>\n<li>EBITDA margin expanded to 26.3% due to favorable mix and pricing actions.<\/li>\n<li>PAT grew to INR 1,049 crores or 16% of sales.<\/li>\n<li>R&amp;D spend increased 10% YOY to INR 400 crores or 6.1% of revenue.<\/li>\n<li>Reported strong growth across key markets like India, North America, and Africa.<\/li>\n<li>India business grew 12% driven by branded prescriptions, generics, and consumer health.<\/li>\n<li>North America sales hit all-time high, growing 18% to $230 million.<\/li>\n<li>South Africa business grew 35% excluding asset sale.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Launches<\/strong>\n<ul>\n<li>Cipla continued to invest in R&amp;D and new product pipeline.<\/li>\n<li>Filed 2 new respiratory products in the US.<\/li>\n<li>Have 4 peptide launches planned in FY25 with more in development.<\/li>\n<li>Working to derisk launch of generic Abraxane and other key assets.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Regulatory Update<\/strong>\n<ul>\n<li>Received warning letter for Indore facility, responded to FDA queries.<\/li>\n<li>Focus remains on remediation efforts at Goa facility.<\/li>\n<li>Submitted pending requisitions for Goa site.<\/li>\n<li>Derisking key launches from Goa is a priority.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Business Development<\/strong>\n<ul>\n<li>Received approval for Actor Pharma acquisition in South Africa.<\/li>\n<li>Will help grow portfolio of leading brands in the market.<\/li>\n<li>Integration expected in Q4 FY24.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Guidance<\/strong>\n<ul>\n<li>Q4 margins to be impacted by seasonality.<\/li>\n<li>FY EBITDA margin trending to higher end of 23-24% guidance range.<\/li>\n<li>ROIC remains healthy at 29% for trailing 12 months.<\/li>\n<li>Targeting around 6% of revenue as R&amp;D spend.<\/li>\n<li>Focus on fewer high potential assets in pipeline.<\/li>\n<li>Expect similar trend of around 6% for next few years.<\/li>\n<li>Attractive long-term growth potential from expanding reach in India.<\/li>\n<li>Near-term outlook depends on WPI trends and ability to take price hikes.<\/li>\n<li>Targeting higher than market growth next year through mix of price and volume.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Abraxane Launch Plans<\/strong>\n<ul>\n<li>Fastest route is approval from Goa site, which could be ready for re-inspection in Q1 FY25.<\/li>\n<li>If Goa not cleared, will require clinical trials from alternate site, delaying launch.<\/li>\n<li>Timeline for approval unchanged if Goa clears, could be faster than expected.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Advair\/ Lanreotide<\/strong>\n<ul>\n<li>Expect to file Advair generic from alternate site by mid FY25.<\/li>\n<li>Unlikely to need full FDA review cycle, could see approval in 6-9 months.<\/li>\n<li>Approval possible by end of FY26 if no other queries from FDA.<\/li>\n<li>Lanreotide now have 20% share, similar to last quarter, with incremental gains expected.<\/li>\n<li>Seeing higher offtake this quarter, share should start picking up.<\/li>\n<li>Supply issues fully resolved at this point.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Symbicort Filing Strategy<\/strong>\n<ul>\n<li>Currently filed from Indore site.<\/li>\n<li>Will add second site to file when get FDA queries.<\/li>\n<li>By approval, will be two site filing or single site depending on strategy.<\/li>\n<\/ul>\n<\/li>\n<li><strong>US Pricing Environment<\/strong>\n<ul>\n<li>Currently in the 4-6% price erosion band, which is normal.<\/li>\n<li>Expect it to shift to 6-8% band in 1-2 years as part of commodity cycle.<\/li>\n<li>Quarter one usually sees more price challenges with new budgets.<\/li>\n<li>Environment slightly calmer now but expect cyclical worsening.<\/li>\n<li>Aims to have portfolio where no single asset is over $50 million.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Peptide Contribution<\/strong>\n<ul>\n<li>Several peptide launches planned in next few quarters.<\/li>\n<li>Peptides will be meaningful but respiratory remains largest category.<\/li>\n<li>Respiratory has higher margins due to controlling more of value chain.<\/li>\n<\/ul>\n<\/li>\n<li><strong>India Consumer Health Business<\/strong>\n<ul>\n<li>Saw strong growth in Q1 but more moderate in Q2 and Q3.<\/li>\n<li>Overall still in a growth trajectory supported by anchor brands.<\/li>\n<li>Inventory rebalancing early in year impacted growth.<\/li>\n<li>35-40 stores have achieved ROI showing profitable model.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cash Deployment<\/strong>\n<ul>\n<li>Disciplined approach to IRGs will continue, not compromise just because of excess cash.<\/li>\n<li>India M&amp;A will be largest given confidence in growth.<\/li>\n<li>Cipla Health bolt-ons continue to be evaluated.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>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&amp;D spend increased 10% YOY to INR 400 crores or 6.1% of revenue. Reported [&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],"tags":[10169,1115],"class_list":["post-158040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","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":155424,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158040,"position":0},"title":"Cipla Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"October 27, 2023","format":false,"excerpt":"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. 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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":136169,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":158040,"position":2},"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":[]},{"id":131066,"url":"https:\/\/alphastreet.com\/india\/cipla-q4-fy2022-research-summary\/","url_meta":{"origin":158040,"position":3},"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":129444,"url":"https:\/\/alphastreet.com\/india\/cipla-limited-q4-fy22-earnings-conference-call-insights\/","url_meta":{"origin":158040,"position":4},"title":"Cipla Limited Q4 FY22 Earnings Conference Call Insights","author":"Praveen","date":"May 11, 2022","format":false,"excerpt":"https:\/\/www.youtube.com\/watch?v=I-Ubq3MAmzg Key highlights from Cipla Limited (CIPLA) Q4 FY22 Earnings Concall Management Update: CIPLA said it crossed the $1 billion milestone in its domestic-branded prescription business, driven by the sustained growth across the company\u2019s acute and chronic portfolios. Q&A Highlights: Prakash Agarwal from Axis Capital asked about the outlook of\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":158865,"url":"https:\/\/alphastreet.com\/india\/indian-railway-catering-and-tourism-corp-ltd-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":158040,"position":5},"title":"Indian Railway Catering and Tourism Corp. 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