Cipla QCIL Chief Executive Officer Ajay Kumar Pal while talking to the media on Wednesday.
Cipla Quality Chemicals Industries Limited (CiplaQCIL) has explained the magic behind the Shs 24 billion profit in the period ending March 31, 2022.
In a media engagement Wednesday at Golden Tulip Hotel in Kampala, Chief Finance Officer Fredrick Kakooza revealed that CiplaQCIL’s revenue performance grew from Shs 2 billion in 2020 to Shs 24 billion in 2021 (a Shs 22 billion leap).
Kakooza explained that payment of overdue such as the US$ 5.3 billion, an equivalent of Shs 19.3 billion from the Zambian government, accounted for the bigger part of the positive performance.
He, however, explained further that even without revenue from Zambia CiplaQCIL earned Shs 11 billion. Out of what was generated, Shs 6.5 billion went into taxes in 2021 compared to Shs 2 billion in 2020.
Other earnings, Kakooza said, came from exports to countries whose supplies were disrupted by the Covid-19 pandemic.
Data shows that CiplaQCIL had a gross margin of 26% in 2021 compared to 19% in 2020 and a net profit margin of 9% the previous year compared to 4% in 2020. On the side of liquidity, CiplaQCIL’s current ratio stood at 2.4% in 2021 in comparison to 2.1% in 2020. According to Kakooza, increased profitability led to improved liquidity. During the period under review, CiplaQCIL’s working capital was at Shs 103.5 billion compared to Shs 78.6 billion the previous year.
CiplaQCIL Chief Executive Officer, Ajay Kumar said this year, the company is going to introduce nine other products, ensure timely completion or commencement of oncology facility, focus on building strong sales structure to accelerate growth, add new products onto the portfolio along with expansion of therapeutic areas, target sustainable and profitable growth, focus on overall return ratios, retain and attract the best talent to support growth strategy.
“Cancer is going to become the next big problem,” Kumar said justifying investment in oncology noting that the second area is diabetes and anti virals.
Outside CiplaQCIL’s identity of HIV, malaria and hepatitis B; the Company is diversifying into anti-cancer, sickle cell anemia, anti-infectives, diabetes, hypertension and pain.
Kumar explained that the direction of oncology means that the company is positioning for the future.
According to Kumar, diversification and all the other strategies for the future will not in any way compromise the quality of products.
In the next few weeks, CiplaQCIL is sending out a Covid-19 vaccine for moderate and mild conditions. Already approved and recommended by the World Health Organization, Kumar says that the company has already received approval from the National Drug Authority (NDA) for emergency use. Once it gets full approval, Kumar says it will be sent out for prescriptions.
“That’s the kind of treatment we are looking at. It’s not just this one. We went into cancer because of the same situation. We are creating that access.
In a bid to make Africa self-reliant, Kumar said that all the products will be made locally in Kampala
CIpla QCIL is registered in 31 African countries and to this Kakooza says that the market for the products is available.