Quarterly Result Update

CIPLA LIMITED
January 28, 2022

Financial Result
In Cr.
Particulars Qtr Ending Qtr Ending
Sept. 21 Sept. 20 Var. (%)
Current Price: ` 904.10
Net Sales (including other operating income) 5,478.86 5,168.69 6
OPM (%) 22.47 23.81 -135 bps
OP 1,230.97 1,230.88 0.01
STOCK DATA
Other Inc. 91.29 86.94 5
BSE Code 500087 PBIDT 1,322.26 1,317.82 0.34
NSE Symbol CIPLA Interest 20.68 47.92 -56.84
Reuters CIPL.BO
PBDT 1,301.58 1,269.90 2.49
Bloomberg CIPLA IN
Depreciation 247.47 248.43 -0.39
PBT 1,054.11 1,021.47 3.2
Share of Profit/(Loss) from Associates -2.07 -0.90 -130
VALUE PARAMETERS PBT 1,052.04 1,020.57 3.08
Taxation 295.16 268.96 9.74
52 W H/L(Rs) 1005.00/738.25
PAT 756.88 751.61 0.7
Mkt. Cap.(Rs Cr) 72943.78
Minority Interest (MI) 28.28 3.46 717.34
Latest Equity(Subscribed) 161.36
Latest Reserve (cons.) 19270.90 Net profit 728.60 748.15 -2.61

Latest EPS (cons.) -Unit Curr. 33.12 EPS (Rs) 9.03 9.28

Latest P/E Ratio -cons 27.30

Cipla Q3 results: Net profit slips marginally to Rs 729 crore, beats estimates
Latest Bookvalue (cons.) -Unit Curr. 240.85
Latest P/BV - cons 3.75
For the quarter ending Dec 2021, consolidated Net sales (including other operating income) of
Dividend Yield -% 0.55
Cipla has increased 6% to Rs 5478.86 crore compared to quarter ended Dec 2020. Sales of
Face Value 2.00
Phamaceuticals segment has gone up 5.39% to Rs 5,377.28 crore (accounting for 97.69% of
total sales). Sales of New Ventures segment has gone up 39.40% to Rs 127.09 crore
(accounting for 2.31% of total sales). Inter-segment sales rose Rs 24.53 crore to Rs 25.51
crore.
SHARE HOLDING PATTERN (%)
Profit before interest, tax and other unallocable items (PBIT) has jumped 0.50% to Rs 1,074.79
Description as on % of Holding crore. PBIT of Phamaceuticals segment fell 1.20% to Rs 1,098.12 crore (accounting for
31/12/2021 102.17% of total PBIT). PBIT of New Ventures segment rose 44.51% to Rs -23.33 crore
Foreign 25.49 (accounting for -2.17% of total PBIT). PBIT margin of Phamaceuticals segment fell from
Institutions 21.41 21.78% to 20.42%. PBIT margin of New Ventures segment rose from negative 46.11% to

Govt Holding 0 negative 18.36%. Overall PBIT margin fell from 20.59% to 19.53%.
Operating profit margin has declined from 23.81% to 22.47%, leading to 0.01% rise in
Non Promoter Corp. Hold. 0.74
operating profit to Rs 1,230.97 crore. Raw material cost as a % of total sales (net of stock
Promoters 35.92
adjustments) increased from 26.37% to 27.34%. Purchase of finished goods cost rose from
Public & Others 16.44 11.78% to 12.85%. Employee cost decreased from 16.45% to 15.64%. Other expenses rose
from 21.43% to 22.09%. Other income rose 5% to Rs 91.29 crore. PBIDT rose 0.34% to Rs
1322.26 crore. Provision for interest fell 56.84% to Rs 20.68 crore.
PBDT rose 2.49% to Rs 1301.58 crore. Provision for depreciation fell 0.39% to Rs 247.47 crore.
Profit before tax grew 3.20% to Rs 1,054.11 crore. Share of profit/loss was 130% lower at Rs -
2.07 crore. Provision for tax was expense of Rs 295.16 crore, compared to Rs 268.96 crore.
Effective tax rate was 28.06% compared to 26.35%. Minority interest increased 717.34% to Rs

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28.28 crore. Net profit attributable to owners of the company decreased 2.61% to Rs 728.60
crore.

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Cipla has increased 13.40% to Rs 16503.01
crore. Sales of Phamaceuticals segment has gone up 12.84% to Rs 16,175.32 crore
(accounting for 97.46% of total sales). Sales of New Ventures segment has gone up 36.84% to
Rs 420.92 crore (accounting for 2.54% of total sales). Inter-segment sales rose Rs 89.02 crore
to Rs 93.23 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped
13.15% to Rs 3,258.31 crore. PBIT of Phamaceuticals segment rose 11.85% to Rs 3,356.56
crore (accounting for 103.02% of total PBIT). PBIT of New Ventures segment rose 19.12% to
Rs -98.25 crore (accounting for -3.02% of total PBIT). PBIT margin of Phamaceuticals segment
fell from 20.94% to 20.75%. PBIT margin of New Ventures segment rose from negative
39.49% to negative 23.34%. Overall PBIT margin fell from 19.67% to 19.63%.
Operating profit margin has declined from 23.75% to 23.04%, leading to 10.04% rise in
operating profit to Rs 3,803.06 crore. Raw material cost as a % of total sales (net of stock
adjustments) decreased from 24.95% to 24.81%. Purchase of finished goods cost rose from
14.32% to 16.88%. Employee cost decreased from 16.40% to 15.14%. Other expenses rose
from 21.07% to 21.32%. Other income rose 5.36% to Rs 216.89 crore. PBIDT rose 9.77% to
Rs 4019.95 crore. Provision for interest fell 33.77% to Rs 88.25 crore. PBDT rose 11.42% to Rs
3931.7 crore. Provision for depreciation fell 2.66% to Rs 761.64 crore.
Profit before tax grew 15.43% to Rs 3,170.06 crore. Share of profit/loss was 22.64% higher at
Rs -6.8 crore. Provision for tax was expense of Rs 862.69 crore, compared to Rs 760.54 crore.
Effective tax rate was 28.39% compared to 27.78%. Net profit attributable to owners of the
company increased 8.19% to Rs 2,154.68 crore.

Full year results analysis.

Net sales (including other operating income) of Cipla has increased 11.84% to Rs 19159.59
crore. Sales of Phamaceuticals segment has gone up 11.32% to Rs 18,878.24 crore
(accounting for 97.92% of total sales). Sales of New Ventures segment has gone up 83.09% to
Rs 401.27 crore (accounting for 2.08% of total sales). Inter-segment sales rose Rs 45.85 crore
to Rs 119.92 crore. Profit before interest, tax and other unallocable items (PBIT) has jumped
45.26% to Rs 3,450.76 crore. PBIT of Phamaceuticals segment rose 41.16% to Rs 3,633.71
crore (accounting for 105.30% of total PBIT). PBIT of New Ventures segment rose 7.89% to Rs
-182.95 crore (accounting for -5.30% of total PBIT). PBIT margin of Phamaceuticals segment
rose from 15.18% to 19.25%. PBIT margin of New Ventures segment rose from negative
90.63% to negative 45.59%. Overall PBIT margin rose from 13.83% to 17.90%.
Operating profit margin has jumped from 18.71% to 22.19%, leading to 32.64% rise in
operating profit to Rs 4,252.43 crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 25.19% to 25.25%. Purchase of finished goods cost rose from
10.70% to 13.74%. Employee cost decreased from 17.42% to 16.80%. Other expenses fell
from 28.24% to 22.24%. Other income fell 22.72% to Rs 265.99 crore. PBIDT rose 27.27% to
Rs 4518.42 crore. Provision for interest fell 18.58% to Rs 160.7 crore. Loan funds declined
from Rs 2,816.43 crore as of 31 March 2020 to Rs 1,537.48 crore as of 31 March 2021.
Inventories rose to Rs 4,669.18 crore as of 31 March 2021 from Rs 4,377.60 crore as of 31 March
2020. Sundry debtors were lower at Rs 3,445.68 crore as of 31 March 2021 compared to Rs
3,891.31 crore as of 31 March 2020. Cash and bank balance rose to Rs 1,401.23 crore as of 31
March 2021 from Rs 1,003.91 crore as of 31 March 2020. Investments rose to Rs 2,710.05

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crore as of 31 March 2021 from Rs 1,471.02 crore as of 31 March 2020 .
PBDT rose 29.97% to Rs 4357.72 crore. Provision for depreciation fell 9.11% to Rs 1067.66
crore. Fixed assets declined from Rs 7,573.42 crore as of 31 March 2020 to Rs 7,477.12 crore as
of 31 March 2021. Intangible assets increased from Rs 2,934.00 crore to Rs 3,007.29 crore.
Profit before tax grew 51.05% to Rs 3,290.06 crore. Share of profit/loss was 73.05% higher at
Rs -12.79 crore. Provision for tax was expense of Rs 888.76 crore, compared to Rs 631.2 crore.
Effective tax rate was 27.12% compared to 29.62%.
Minority interest increased 65.19% to Rs -16.36 crore. Net profit attributable to owners of the
company increased 55.50% to Rs 2,404.87 crore. Equity capital increased from Rs 161.25 crore
as of 31 March 2020 to Rs 161.29 crore as of 31 March 2021. Per share face Value remained
same at Rs 2.00.
Cash flow from operating activities increased to Rs 3,755.20 crore for year ended March 2021
from Rs 3,068.45 crore for year ended March 2020. Cash flow used in acquiring fixed assets
during the year ended March 2021 stood at Rs 818.92 crore, compared to Rs 1,000.01 crore
during the year ended March 2020.
Other Highlights
In Q3 FY22, India business grew by 13% YoY led by sustained momentum across core therapies
and traction in flagship brands and South Africa private business grew 16% YoY. In Q3 FY22,
SAGA (South Africa and Global Access) fell 4% YoY and API business fell 27% YoY. In Q3 FY22,
India contributed 46% of total revenue, North America 21%, SAGA 16%, International markets
13%, API 3%, Others 1%.
Management Comment
Umang Vohra MD and Global CEO, Cipla said "I am pleased to see the strong launch and
commercial momentum across our core markets during the quarter. Our portfolio execution in
branded markets of India & South Africa and strong respiratory traction driving our US generic
franchise to a multi-quarter high quarter were key drivers. The unlocking of our first 505(b)(2)
peptide asset, lanreotide injection is an important step in strengthening our complex generics
engine, inching up our US footprint. Our EBITDA margins for the quarter came in at 22.7% and
given the YTD traction, we are well placed to close the year in-line with our guidance of 22%.
We continue our efforts to improve patient access for therapies including covid products and
ensuring adequate supply across all our markets.”

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