• Revenue from operations increased by 14.62% YoY and 15.93% QoQ to ₹5,038.29 crore in Q2 FY21 and 11.92% YoY to ₹9,384.45 crore in H1 FY21.
• Gross margin stood at 61.4% in Q2 FY21.
• EBITDA stood at ₹1,177 crore, up by 12% QoQ and 29% YoY in Q2 FY21. EBITDA margin was 23.4% in Q2 FY21 v/s 20.7% in Q2 FY20.
• Net profit grew by 38.96% YoY and 16.48% QoQ to ₹659.35 crore in Q2 FY21 and 32.96% YoY to ₹1,225.39 crore in H1 FY21.
• Effective tax rate was 28.5%.


• At company level, the contribution from Covid portfolio was less than 5% in the revenue and EBITDA.
• Employee costs stood at ₹820.9 crore in Q2, up by 6.3% QoQ.
• Other expenses which include research and development (R&D), regulatory, manufacturing and sales
promotion expenses was ₹1,094.3 crore, increasing by 17% QoQ. This was driven by cost optimization
and digital initiatives.
• Total R&D expense in Q2 was ₹226 crore.
• Update on Covid patients: Cipla served more than 1.5 lakh severe Covid-19 patients, supported more
than 95,000 patients via 24*7 helpline for Covid-19 products and post-recovery support of mild-to-
moderate Covid-19 patients was offered.
• India business saw a growth of 17% YoY with strong growth across the three businesses: prescription,
trade generics and consumer health business.
• The prescription business grew 14% on a YoY basis supported by continued traction in the Covid
portfolio, chronic therapies and modest recovery in the hospital portfolio while a subdued demand
was witnessed in the acute business.
• Trade generics business delivered healthy growth due to strong demand and high order flow.
• In consumer health business, revenue stood at more than ₹180 crore in H1 FY21. This includes the
sale of sanitizers which may not continue at the same level.
• Working capital loan stood at ₹300 crore.

• As per IQVIA report, Cipla delivered a growth of 29% in respiratory therapy (market degrowth of 3%),
10% in inhalation therapy (market growth of 7%), 6% in urology therapy (market growth of 3%) and
13% in cardiology therapy (market growth of 15%). It was ranked 2nd in overall chronic therapy with a
market share of 7.6% and a growth of 9%.
• Cipla launched of Berok Zindagi 3.0, a patient-focussed respiratory initiative on digital platform.


• South Africa business witnessed a growth of 14% on a YoY basis in local currency in Q2.
• Private business grew by 9% YoY and tender business grew by 28% YoY in local currency terms in the
• As per IQVIA, Cipla maintained 7% market share in the private market in South Africa.
• As per IQVIA, over-the-counter (OTC) market share stood at 7.2%.
• It entered into partnership with Alvotech for commercialization of 5 biosimilar products in
immunology and oncology space.


• US generics delivered a revenue of $141 million supported by continued momentum in the new
launches such as Albuterol, Esomeprazole oral suspension and DHE Nasal Spray. These supported the
base business growth.
• It launched dimethyl fumarate in the quarter.
• Cipla gained 84% prescription market share in the Proventil market as per IQVIA week ending 2
October, 2020. It has over 11% market share in generic market.
• Working capital loan stood at ~$51 million.


• The European operations grew 24% YoY in USD terms. This was driven by market share gains and key
direct-to-market (DTM) markets.
• The supply of Remdesivir commenced across multiple markets.


• The momentum of new launches is expected to continue.
• It shall continue to transform healthcare delivery proposition and patients on digital platform.
• It shall focus on strong governance around safety, supply security, cost control and working capital
management in H2 FY21.
• It shall focus on key launches and scale up its branded and generic market in India, South Africa, US
and emerging markets.
• Research and development spend is expected to be 6%-7% of revenue on an annual basis going forward.

Signing off

Having worked several years into Life Insurance, Health Insurance, Mutual Funds & Closely with people into financial planning i am now putting my first step in investment advisory

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