NEW DELHI :Cipla Ltd posted a 43.4% rise in consolidated net profit for the quarter ended September to ₹1,130.91 crore, against ₹788.90 crore in the corresponding quarter of last year.

The drug major’s Q2FY24 revenue increased 14.6% from a year ago from ₹5,828.54 crore to ₹6,678.15 crore, driven by performance in India, the US, and South Africa, it said in an exchange filing on Friday.

“These results reflect the strength of our core business across key markets of India, North America, and South Africa. We reported our highest-ever quarterly revenue with Ebitda margins scaling up to 26%. One-India business grew at a healthy 10% y-o-y with continued market-beating performance in the branded prescription and trade generics business. In South Africa, the private market business grew in double digits driven by strong execution across prescription and OTC,” said Umang Vohra, managing director and global CEO of Cipla. “…Our pipeline is progressing well with key milestones achieved in Respiratory and Peptide assets. We will continue our focus on driving profitable growth across businesses.”

Earnings before interest, taxes, depreciation, and amortization (ebitda) during the quarter under review grew 33.1% y-o-y to ₹1,734 crore with an Ebitda margin of 26%. The company had a strong balance sheet with a net cash position of ₹5,850 crore. Its total debt was at ₹961 crore at the end of the September quarter. The company expects the margin to sustain during the next quarter, while Q4 might differ due to reverse seasonality in India.

Vohra said usually, the company has a capital expenditure plan of around ₹1,500 crore. “We will continue investing in respiratory capabilities, so it will continue to expand whether in India or the US. The company is also in the process of investing in its API facilities and it will cover a lion’s share of our capex plans,” he said. “New product activity will continue happening across our markets.”

The Yusuf Hamied-led pharma major’s US business posted its highest-ever revenue of $229 million, registering 28% growth y-o-y driven by strong momentum and key milestones achieved across differentiated portfolios. Cipla’s Lanreotide market share grew to 20%, as per IQVIA’s August 2023 data.

“Going forward, the US business trajectory is in the range of $220-225 million on a sustainable basis, give or take 5 million, because the buying patterns in December and Q4 are slightly different,” he said. South Africa’s private market business grew 12% y-o-y in local currency backed by robust performance in prescription and over-the-counter (OTC). The OTC share will further expand following the acquisition of Actor Pharma, the firm added.

Its research and development (R&D) investments rose 13% y-o-y to ₹379 crore (5.7% of sales), driven by progress of clinical trials of key pipeline assets and other developmental efforts.

The One India business grew by 10% y-o-y across branded prescription, trade generics, and consumer health. The branded prescription business grew at 11% driven by key therapies in chronic portfolio as its share of chronic grew by 140 bps y-o-y to 60% in the quarter. The company said its theme of ‘Big Brands Bigger’ continued with 22 brands with over ₹100 crore revenue.

Its trade generic business focussed on on-ground commercial execution achieving double-digit growth despite weak seasonality with margins supported by declining raw material costs. The firm is expanding its footprint through investments in field force and focus on customer engagement by leveraging both physical and digital capabilities.

The quarterly performance of Cipla’s health franchise was impacted by inconsistent weather patterns, the company said, as core portfolio remained strong with five brands and over ₹100 crore sales for the trailing twelve months.

On reports of a promoter stake sale, Vohra said: “The company and the promoters are separate entities. We maintain the stance that it is speculative, and we haven’t heard of deal finalization.”