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Health Technology

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 2019 INRUSD
Revenue161,887.40M2,314.57M
Gross Profit51,888.70M741.87M
Operating income18,760.90M268.23M
Income before tax20,791.40M297.26M
Net income15,277M218.42M
EBITDA29,717.50M424.88M
Diluted EPS18.930.27
Dividends Per Share30.04
Total Assets239,633.20M3,459.15M
Total liabilities86,090.80M1,242.73M
Total equity150,122.80M2,167.05M
Operating cash flow16,047.80M229.44M
Currency in INRCurrency in USD

Historical Data

 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 109,507.60M 134,420.40M 142,298.10M 150,110.30M 161,887.40M
Gross Profit 40,668.40M 46,429.40M 48,235.70M 52,774.30M 51,888.70M
Operating income 12,634.80M 17,463.70M 15,212M 17,775.30M 18,760.90M
Income before tax 16,542.50M 17,270.30M 12,221.70M 16,694.60M 20,791.40M
Net income 11,807.70M 13,599.90M 10,063.90M 14,105.30M 15,277M
EBITDA 17,681.90M 25,005.50M 23,926.60M 27,273.40M 29,717.50M
Diluted EPS 14.66 16.89 12.50 17.50 18.93
Dividends Per Share 2 2 2 3 3
Total Assets 173,834.50M 211,281.80M 210,370.70M 228,605.50M 239,633.20M
Total liabilities 64,014.80M 92,449.70M 80,411.30M 82,633.90M 86,090.80M
Total equity 108,014.90M 115,162.20M 125,436.60M 142,291.90M 150,122.80M
Operating cash flow 10,379M 15,885.70M 22,344.50M 13,781.60M 16,047.80M
 Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019
Revenue 1,790.99M 2,053.13M 2,122.04M 2,328.51M 2,314.57M
Gross Profit 665.13M 709.16M 719.32M 818.63M 741.87M
Operating income 206.64M 266.74M 226.85M 275.73M 268.23M
Income before tax 270.55M 263.78M 182.25M 258.96M 297.26M
Net income 193.11M 207.72M 150.07M 218.80M 218.42M
EBITDA 289.18M 381.93M 356.80M 423.06M 424.88M
Diluted EPS 0.23 0.25 0.18 0.27 0.27
Dividends Per Share 0.03 0.03 0.02 0.04 0.04
Total Assets 2,777.74M 3,190.48M 3,239.71M 3,505.05M 3,459.15M
Total liabilities 1,022.90M 1,396.04M 1,238.33M 1,266.96M 1,242.73M
Total equity 1,725.99M 1,739.01M 1,931.72M 2,181.66M 2,167.05M
Operating cash flow 169.74M 242.63M 333.21M 213.78M 229.44M

Valuation Measures

Mar 2019
PER27.90
ROA6.52%
ROE10.44%
Operating margin11.58%
Profit margin9.43%

Key executives

  • Chief Executive Officer, MD & Director: Umang Vohra
  • President & Global Chief People Officer: Raju Mistry
  • Global Chief Operating Officer: Raghunathan Ananthanarayanan
  • Global Chief Financial Officer: Kedar Upadhye
  • Global Chief Medical Officer: Jaideep A. Gogtay

Shareholders

  • HAMIED YUSUF KHWAJA (20.3%)
  • AHMED SOPHIE (5.7%)
  • ICICI Prudential Asset Management Co. Ltd. (5.3%)
  • HAMIED MUSTAFA KHWAJA (4.2%)
  • Life Insurance Corp. of India (3.4%)
  • Colonial First State Asset Management (Australia) Ltd. (3.4%)
  • First State Investment Management (UK) Ltd. (2.8%)
  • HDFC Asset Management Co. Ltd. (Invt Mgmt) (2.5%)
  • VAZIRALLI SAMINA (2.2%)
  • Reliance Nippon Life Asset Management Ltd. (Invt Mgmt) (1.4%)

Contact Details

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

Related Companies

  • Cipla Europe NV
  • Inyanga Trading 386 (Pty) Ltd.
  • Cipla USA, Inc.
  • Meditab Holdings Ltd.
  • Cipla FZE
  • Jay Precision Pharmaceuticals Pvt Ltd.
  • Medispray Laboratories Pvt Ltd.
  • Saba Investment Ltd.
  • Cipla (EU) Ltd.
  • Cipla Holding BV
  • Cipla Ventures
  • Hamsons Laboratories Llp
  • Golden Cross Pharma Pvt Ltd.
  • Cipla Quality Chemical Industries Ltd.
  • Meditab Specialities Pvt Ltd.
  • Cipla Medpro South Africa Limited

Competitors

  • Dr. Reddy's Laboratories Ltd.
  • Sun Pharmaceutical Industries Limited
  • Amneal Pharmaceuticals, Inc. Class A
  • Biocon Limited
  • Piramal Enterprises Ltd.
Last Updated on 20 Sep, 2019

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