Cipla’s revenues grew 6% YoY to Rs 5478.9 crore led by 12.9% YoY growth in domestic formulations to Rs 2518 crore due to sustained volume traction in flagship brands. US grew 8.8% YoY to Rs 1124 crore owing to momentum in core products and traction in respiratory portfolio. South Africa business grew 7.8% YoY to Rs 623 crore while RoW market declined 6.3% YoY to Rs 1008 crore. API was down 25.4% YoY to Rs 150 crore amid momentary slowdown in orders from developed market. EBITDA margins were down 135 bps YoY to 22.5% while EBITDA was flat YoY at Rs 1231 crore. Subsequently, adjusted profit was down 2.6% YoY to Rs 728.6 crore.

Cipla’s Q3FY22 revenues were in-line with I-direct estimates driven by strong traction in One-India and US business while the margin profile was better than anticipated mainly due to lower other expenditure. We continue to focus on the management’s long-drawn strategy of targeting four verticals viz. One-India, South Africa & EMs, US generics & specialty and lung leadership. FY21 launch of Albuterol sulphate (Proventil HFA) amid rise in demand for Albuterol products in the ongoing Covid-19 pandemic along with approval for first peptide asset, Lanreotide injection to strengthens Cipla’s complex generics presence. While US focus will be on specialty including hospitals, value accretive generics, India focus will be on branded (Rx), trade generics (TGx). On the Africa front, Cipla continues to rebase its business model towards private business in the backdrop of shrinking tender opportunities

Q3FY22 Earnings Conference Call highlights 

India business - Covid portfolio declined 10% YoY and 17% QoQ. Core business except Covid grew 16% YoY.

The branded prescription business was driven by sustained traction across therapies in core portfolio, Trade generics business witnessed strong demand across flagship brands, key therapeutic categories and consumer health business witnessed robust traction in anchor brands & transitioned brands.

US – Expects significant momentum from H2FY23 onwards on the back of possible approvals and launches of gRevlimid, gAdvair and gAbraxane besides momentum gains from Albuterol portfolio.

In Albuterol, Cipla’s market share was at 15.9% of overall while in Arformoterol, Cipla’s market share was at 26.8% of the overall market.

Approved ANDAs/NDAs: 167; tentative approval: 18; pending approval: 72.

SAGA – SAGA declined 4% YoY in US $ terms, South Africa private market growth was 16% YoY in ZAR terms on back of market beating growth in anti-retroviral (ARV), oncology, respiratory and anti-infectives therapies.

Q3FY22 break-up: South Africa Private: US $ 60 million, South Africa Tender: US$23 million and others: US$36 million.

Global consumer business contributed 8% to overall revenues YTD.

International markets – Steady double digit growth in secondary terms during the quarter, two respiratory products filed in Europe.

API – Slowdown in orders from developed markets, traction in orders from emerging markets; medium-term orderbook robust.

R&D spend: Rs 262 crore with priority projects on track, R&D to be around 7-7.5% in future, ETR at 28%.

The board approved the transfer of the following undertakings as a going concern on a slump sale basis – 1) India based US business undertaking to Cipla BioTec and 2) Consumer business undertaking to Cipla Health