Cipla Ltd.

Company Background

Cipla is a major Indian generic drugmaker, competing for second place in the industry in India in terms of the size of its business. It has been doing business in 170 countries and has over 30 production bases. It is a long-established company compared with other Indian leading generic drugmakers. The predecessor of Cipla was founded by K. A. Hamied in 1935, long before India's independence in 1947. It is said that Mahatma Gandhi visited Cipla and asked Hamied to supply medicines that were desperately needed in India at the time. During World War II, Hamied crisscrossed the country to supply medicines that were in short supply due to stagnant imports.

As a trailblazer in India's pharmaceutical industry, Cipla has been busily expanding its business in Africa and other emerging economies. In particular, it is well-known for its low-cost HIV drug. In 2013, it turned a South African company it did business with into a wholly owned subsidiary.

K. A. Hamied's son Yusuf, who earned a doctorate in organic chemistry from the University of Cambridge, took over the company in 1972 and has been serving as the chairman. The founding family owns nearly 40% of the shares in the company.

Business Summary

Cipla Ltd. engages in the manufacture and distribution of healthcare products and bulk drugs. It operates through the following segments: Pharmaceuticals and New Ventures. The Pharmaceuticals segment develops, manufactures, sells and distributes generic or branded generic medicines as well as active pharmaceutical ingredients. The New Ventures segment includes the operations of the two wholly owned subsidiaries, Cipla Health Ltd., a consumer healthcare company and Cipla BioTec Pvt. Ltd, which is into the business of Biosimilars. The company was founded by Khwaja Abdul Hamied in 1935 and is headquartered in Mumbai, India.

Financial Highlights

Mar 2022	INR	USD
Revenue	217,257.90M	2,915.83M
Gross Profit	71,938.80M	965.49M
Operating income	36,176.80M	485.53M
Income before tax	34,932.70M	468.83M
Net income	25,167.50M	337.77M
EBITDA	46,055.10M	618.10M
Diluted EPS	31.16	0.41
Dividends Per Share	5	0.06
Total Assets	271,011.20M	3,576.52M
Total liabilities	59,769.10M	788.77M
Total equity	208,416.90M	2,750.47M
Operating cash flow	32,972.40M	442.52M
	Currency in INR	Currency in USD

Historical Data

INR | USD

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	150,110.30M	161,887.40M	168,571.40M	190,622.50M	217,257.90M
Gross Profit	52,774.30M	51,888.70M	53,964.60M	60,761M	71,938.80M
Operating income	17,775.30M	18,901.50M	19,122.50M	32,051.60M	36,176.80M
Income before tax	16,694.60M	20,791.40M	21,781.80M	32,900.60M	34,932.70M
Net income	14,105.30M	15,277M	15,465.20M	24,048.70M	25,167.50M
EBITDA	27,273.40M	29,858.10M	30,095.60M	42,057.30M	46,055.10M
Diluted EPS	17.50	18.93	19.16	29.78	31.16
Dividends Per Share	3	3	3	5	5
Total Assets	228,605.50M	239,633.20M	236,625.60M	251,518.90M	271,011.20M
Total liabilities	82,633.90M	86,090.80M	75,963.70M	65,587.20M	59,769.10M
Total equity	142,291.90M	150,122.80M	157,630M	183,265.30M	208,416.90M
Operating cash flow	13,781.60M	16,047.80M	29,550.80M	36,966.50M	32,972.40M

	Mar 2018	Mar 2019	Mar 2020	Mar 2021	Mar 2022
Revenue	2,328.51M	2,314.57M	2,377.39M	2,567.82M	2,915.83M
Gross Profit	818.63M	741.87M	761.07M	818.49M	965.49M
Operating income	275.73M	270.24M	269.68M	431.75M	485.53M
Income before tax	258.96M	297.26M	307.19M	443.19M	468.83M
Net income	218.80M	218.42M	218.10M	323.95M	337.77M
EBITDA	423.06M	426.89M	424.44M	566.54M	618.10M
Diluted EPS	0.27	0.27	0.27	0.40	0.41
Dividends Per Share	0.04	0.04	0.04	0.06	0.06
Total Assets	3,505.05M	3,459.15M	3,127.84M	3,440.10M	3,576.52M
Total liabilities	1,266.96M	1,242.73M	1,004.13M	897.05M	788.77M
Total equity	2,181.66M	2,167.05M	2,083.64M	2,506.57M	2,750.47M
Operating cash flow	213.78M	229.44M	416.76M	497.96M	442.52M

Valuation Measures

Mar 2022
PER	32.64
ROA	9.63%
ROE	12.85%
Operating margin	16.65%
Profit margin	11.58%

Key executives

Global CEO, MD & Executive Director: Umang Vohra
Co-President & Global Chief People Officer: Raju Mistry
Co-President & Global Chief Scientific Officer: Pradeep Bhadauria
Global Chief Financial Officer: Ashish Adukia
Global Chief Medical Officer: Jaideep A. Gogtay

Shareholders

HAMIED YUSUF KHWAJA (18.6%)
AHMED SOPHIE (5.6%)
SBI Funds Management Pvt Ltd. (4.6%)
HAMIED MUSTAFA KHWAJA (3.4%)
HDFC Asset Management Co. Ltd. (Invt Mgmt) (2.3%)
Life Insurance Corporation of India (Investment Portfolio) (2.2%)
Norges Bank Investment Management (2.2%)
HAMIED SAMINA VAZIRALLI (2.2%)
The Vanguard Group, Inc. (2.0%)
BlackRock Fund Advisors (1.7%)

Contact Details

Website:http://www.cipla.com
Address: Cipla House, Peninsula Business Park, Ganpatrao Kadam Marg, Mumbai, 400013, India
Phone: +91.22.24826000

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Competitors

Dr. Reddy's Laboratories Ltd.
CMG Pharmaceutical Co., Ltd.
Adcock Ingram Holdings Limited
Knight Therapeutics, Inc.
Amneal Pharmaceuticals, Inc. Class A
Amphastar Pharmaceuticals, Inc.
Spero Therapeutics, Inc.
Innoviva, Inc.
Iterum Therapeutics plc
Crinetics Pharmaceuticals Inc
Bora Pharmaceuticals Co Ltd

Last Updated on 17 Mar, 2023