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Cipla Ltd, India's pharma major, has announced an excellent set of numbers for the fourth quarter ending March 31, 2025, both revenue and profit beating analysts' estimates. Cipla's Board has further approved a dividend of ₹16 per share comprising a special dividend of ₹3 as a payback to investors for the firm's good showing.
Revenue Exceeds Estimates:
Cipla registered consolidated revenue from operations of ₹67.3 billion for Q4 FY25, slightly above the IBES estimate of ₹66.92 billion. This represents a robust year-on-year growth, backed by robust traction in domestic and international markets.
Net Profit Exceeds Forecasts
Quarterly net profit was at ₹12.22 billion, well above the IBES forecast of ₹10.24 billion. The steep increase was helped by better operating margins, a good product mix, and sustained momentum in US and SAGA (South Africa, Sub-Saharan Africa, and Global Access) markets.
Dividend Bonanza for Shareholders
The Board of Directors has approved a dividend of ₹16 per share for FY25, out of which there is a special dividend of ₹3 per share. This payout demonstrates Cipla's belief in rewarding shareholders and represents a trend of increasing dividend payment in the last three years.
Operational Highlights:
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Domestic business registered growth of 9–11%, driven by core portfolio and new launches.
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US sales, accounting for 20–25% of total revenue, were flat despite some supply issues, with growth being led by major respiratory and specialty products.
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SAGA and Europe/ROW segments recorded double-digit growth, fueled by robust demand and new product launches.
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EBITDA margin increased to approximately 24%, up from 21% in the previous year, reflecting operational efficiency.
Strategic Developments:
Cipla further reinforced its pipeline through new launches in the US and strong performance of its respiratory and specialty franchises. The firm also sustained its tender revenues in South Africa and increased its presence in emerging markets.
Investor and Market Reaction:
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Cipla stocks traded up before the numbers and are likely to respond favorably to the earnings surprise and rich dividend announcement. Cipla's growth path continues to excite analysts, who see solid US momentum, domestic turnaround, and robust product pipeline as reasons for the optimism.
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Cipla's good Q4 performance, margin growth, and shareholder-oriented dividend policy reaffirm its leadership status in the global pharma industry," added a company representative on the post-results conference call.
With a solid FY25 close, Cipla is poised for further growth, aided by its diversified portfolio, operational efficiencies, and focus on delivering value to shareholders.
Source: NDTV Profit, CNBC-TV18, Moneycontrol, Republic World
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