Drugmaker Cipla has posted healthy financials, including an 11 per cent growth in net profit at ₹789 crore for the quarter ended September 30, 2022. But company topbrass redflagged challenges ahead in the form of geo-political uncertainties and currency fluctuation.
The company’s total revenue from operations in the quarter under review grew 6 per cent, to ₹5,829 crore, and by 12 per cent when compared to the corresponding period last year without the business of Covid-products. India accounted for 44 per cent of its revenues.
Flagging geo-political uncertainties and currency fluctuations, Umang Vohra, Cipla’s Managing Director and Global Chief Executive, said the volatile economy in some emerging markets made it difficult to expatriate money back, and this necessitated a more calibrated approach to the products to be sold there. These regions included Sri Lanka and West Asia, among others, he said.
On the company’s performance for the three months under review, he said, it reflected the momentum of their One-India business, besides a solid execution on a differentiated portfolio in the US, including the launch of Lenalidomide. Cipla’s US revenues stood at $179 million, up 25 per cent over last year. North America accounts for 25 per cent of its revenues.
“Our reported operating profitability of 22.3 per cent is tracking well within our full-year guidance of 21 to 22 per cent. Our proactive logistics management, cost rigor, and calibrated pricing actions have helped offset the adverse impact of inflationary cost elements on profits. We are closely working with USFDA on Goa observations, de-risking key assets, and improving compliance holistically across manufacturing locations,” Vohra said. The company’s total debt stood at ₹1,068 crore as of September 2022.
In the next six months, the company expects to launch about 15 products in India, he said, and depending on how the USFDA-related situation pans out over the next few months, that would impact the launch of products like Abraxane from the Goa plant in the first half of the calendar year. The Goa plant is under OAI (official action indicated) status from the USFDA.