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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 2020 INRUSD
Revenue171,319.90M2,416.15M
Gross Profit69,389.10M978.60M
Operating income20,313.40M286.48M
Income before tax21,781.80M307.19M
Net income15,465.20M218.10M
EBITDA32,059.90M452.14M
Diluted EPS19.160.27
Dividends Per Share----
Total Assets236,625.60M3,127.84M
Total liabilities76,052.80M1,005.30M
Total equity157,630M2,083.64M
Operating cash flow29,550.80M416.76M
Currency in INRCurrency in USD

Historical Data

 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 134,420.40M 142,298.10M 150,110.30M 161,887.40M 171,319.90M
Gross Profit 46,429.40M 48,235.70M 52,774.30M 51,888.70M 69,389.10M
Operating income 17,463.70M 15,212M 17,775.30M 18,901.50M 20,313.40M
Income before tax 17,270.30M 12,221.70M 16,694.60M 20,791.40M 21,781.80M
Net income 13,599.90M 10,063.90M 14,105.30M 15,277M 15,465.20M
EBITDA 25,005.50M 23,926.60M 27,273.40M 29,858.10M 32,059.90M
Diluted EPS 16.89 12.50 17.50 18.93 19.16
Dividends Per Share 2 2 3 3 --
Total Assets 211,281.80M 210,370.70M 228,605.50M 239,633.20M 236,625.60M
Total liabilities 92,449.70M 80,411.30M 82,633.90M 86,090.80M 76,052.80M
Total equity 115,162.20M 125,436.60M 142,291.90M 150,122.80M 157,630M
Operating cash flow 15,885.70M 22,344.50M 13,781.60M 16,047.80M 29,550.80M
 Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020
Revenue 2,053.13M 2,122.04M 2,328.51M 2,314.57M 2,416.15M
Gross Profit 709.16M 719.32M 818.63M 741.87M 978.60M
Operating income 266.74M 226.85M 275.73M 270.24M 286.48M
Income before tax 263.78M 182.25M 258.96M 297.26M 307.19M
Net income 207.72M 150.07M 218.80M 218.42M 218.10M
EBITDA 381.93M 356.80M 423.06M 426.89M 452.14M
Diluted EPS 0.25 0.18 0.27 0.27 0.27
Dividends Per Share 0.03 0.02 0.04 0.04 --
Total Assets 3,190.48M 3,239.71M 3,505.05M 3,459.15M 3,127.84M
Total liabilities 1,396.04M 1,238.33M 1,266.96M 1,242.73M 1,005.30M
Total equity 1,739.01M 1,931.72M 2,181.66M 2,167.05M 2,083.64M
Operating cash flow 242.63M 333.21M 213.78M 229.44M 416.76M

Valuation Measures

Mar 2020
PER22.04
ROA6.49%
ROE10.05%
Operating margin11.85%
Profit margin9.02%

Key executives

  • Chief Executive Officer, MD & Director: Umang Vohra
  • President & Global Chief People Officer: Raju Mistry
  • Global Chief Financial Officer: Kedar Upadhye
  • Global Chief Medical Officer: Jaideep A. Gogtay
  • President-Global Quality & Medical Affairs: Ranjana Pathak

Shareholders

  • HAMIED YUSUF KHWAJA (20.3%)
  • ICICI Prudential Asset Management Co. Ltd. (6.2%)
  • AHMED SOPHIE (5.7%)
  • Life Insurance Corp of India (4.9%)
  • HAMIED MUSTAFA KHWAJA (4.2%)
  • SBI Funds Management Pvt Ltd. (2.4%)
  • HDFC Asset Management Co. Ltd. (Invt Mgmt) (2.3%)
  • Aditya Birla Sun Life AMC Ltd. (2.2%)
  • Norges Bank Investment Management (1.5%)
  • The Vanguard Group, Inc. (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

  • Sitec Labs Ltd.
  • Wanbury Ltd. /4 Brands/
  • Cipla Pharma Lanka (Pvt) Ltd.
  • AJM Pharma (Pvt) Ltd.
  • 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
  • Biocon Limited
  • Piramal Enterprises Ltd.
  • Amneal Pharmaceuticals, Inc. Class A
  • Amphastar Pharmaceuticals Inc
  • Knight Therapeutics, Inc.
  • Aurobindo Pharma Ltd
  • Iterum Therapeutics Plc
  • Plus Therapeutics, Inc.
  • Spero Therapeutics, Inc.
Last Updated on 3 Jul, 2020

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