The scrip touched the day’s high of Rs 924, up 1.8 per cent, in early trade on the National Stock Exchange (NSE). At 10.40 am, the stock was trading 1.44 per cent higher at Rs 920.55 while NSE barometer Nifty50 was flat 18,282, up 0.02 per cent.
In an exchange filing on Tuesday, the company said the results during the second quarter were driven by strong performance in the domestic as well as international markets.
The company’s revenue from operations rose 10 per cent YoY to Rs 5,520 crore, with revenue from India operations up 16 per cent to Rs 2,416 crore.
The company said it witnessed sustained volume traction across core therapies during the recently concluded quarter.
For the quarter under review, earnings before interest, tax, depreciation and amortization (Ebitda) grew 4 per cent on-year to Rs 1,226 crore, with the EBITDA margin at 22.2 per cent in Q2.
For the said quarter, the company’s US business posted a revenue of $142 million which was at a multi-quarter high. International markets grew 14 per cent YoY in dollar terms.
Research and development expenses were at Rs 274 crores in the quarter gone by, the filing said.
According to the company, its priorities for 2021-22 (Apr-Mar) include maintaining growth momentum in large branded and unbranded generic franchises in India and South Africa.
ICICI Securities said Cipla’s Q2FY22 result was above our estimates led by strong performance in India. However, it expects India growth to taper down in the coming quarters with declining contribution from COVID-19 portfolio and higher base.
“The company has shown strong performance over past 5-6 quarters in India business led by COVID-19 portfolio as well as benefits of one India strategy undertaken in FY20 which would help in sustaining above industry growth. US business would gradually scale up on the back of complex launches. We retain ADD rating on the stock with a revised target price of Rs 1,004,” the brokerage said in a note.
