Ranvir's Portfolio

Q&A: Questions & Answers Portfolio Q&A
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Cipla Q3 concall highlights -

  1. EBITDA margins at 24.8 …highest ever in company’s history. On ground field activity has resumed, still digital adoption and tight cost controls- continue. On track to save 400-500 cr of operating costs.

  2. Strong cash flow generation. Repaid 137 million dollars raised earlier for Inva Gen acquisition. Also repaid 300 cr of working capital loans in India. So…thats about 1300 cr of lesser debt. Sep 20 …debt was at aprox 3200 cr. Long term operating margin guidence- between 17-20 pc. This Qtr sales included Covid related sales which may signifigantly moderate going fwd.

  3. Q3 sales at 5169 cr, up 18 pc. Gross margins at 61.4 pc, down 93 bps yoy. EBITDA at 1281 cr, margins at 24.8 pc. PAT at 748 cr, margins at 14.5 pc.

  4. India presciption business grew 25 pc !!! It was aided by COVID portfolio. Without the COVID portfolio, growth would have been arounf 6-7 pc. Respiratory portfolio grew 14 pc, Urogoly grew 8 pc, Derma grew 15 pc.

India Trade generics grew 7 pc.

Consumer healthcare recorded 9 month revenue of 250 cr.

US generics sales grew 6 pc to 141 million dollars. Good traction in Albuterol. Cipla now ranks no 1 in Proventil with mkt share of 86.4 pc. Overall albuterol mkt share at aprox 14 pc. US respiratory sales have crossed $ 100 million in 9 months.

US EBITDA margins are now close to company level EBITDAs.

Two complex assets in generics space are in pipeline. Clinical trials to begin shortly. These trials to cost a lot lesser vs what was spent in case of Advair. Advair TAD ( target action date ) date expected towards end of Q4.

South Africa - flattish sales growth in Q3. SA mkt rank -03, Mkt share at 7 pc. OTC mkt share at 6 pc, mkt rank -03.

Sub Saharan region growth at 15 pc.

Africa Tender business grew by 63 pc.

EM business grew 45 pc. European business up 28 pc.

API business grew 18 pc.

  1. In the next 12 to 18 months, expect highest ever number of launches in company’s history. Expect R&D spends to go up from FY22…say around 6-7 pc of revenues.

  2. One of company’s long term objectives in India and SA - to take up the consumer and OTC business to 10-12 pc of global sales.

  3. Over next 3-4 yrs, US sales expected to go up by another 300-500 million dollars ( say 2200-3600 cr ). This range accounts for negative and positive outcomes.

  4. Company’s biosimilar play in EM is via in-licensing route, maintaining threshold margins. A lot of these are lined up for launches in next 2 yrs. This is expected to be a limited competition business and is expected to be decent in size as well.

Disc: invested.

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