Full Year 2021 Cipla Ltd Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Just want some clarification on the EBITDA margin trajectory that you talked about. While several times, you said that there will -- the margins will improve from the 22%, you've also mentioned that the efforts would be to sustain at this level. Given that the India cost will normalize to some extent next year, what are the additional drivers for the margin versus FY '21 level?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Yes, sir, you are audible.

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. Sir, just to understand what you're trying to say is that while it might fluctuate, this is the 22% to whatever percent is the range you would like to mitigate in the medium term?

Question: Neha Manpuria - JPMorgan Chase & Co, Research Division - Analyst : Okay. And on the gross margin, look, historically, it was 63% to 65% sort of gross margin number. Even if I were to adjust the 200 basis points, we are in that lower end of the number. To get to the high end, does it need a lot of the U.S. launches to come through and, therefore, it's more FY '23, FY '24? Is that the way to look at gross margin?

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : I have 2 questions. One pertains to the increasing cost of raw materials that have been in the news for quite some time. Do you expect -- I mean, how well is Cipla protected against this? And do you see increase in realizations happening relating to COVID products? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 14, 2021 / 1:30PM, CIPL.NS - Full Year 2021 Cipla Ltd Earnings Call

Question: Charulata Gaidhani - Dalal & Broacha Stock Broking Pvt Ltd., Research Division - Analyst : Okay. And another question relating to South Africa. This quarter, we have seen a slightly lower growth in South Africa compared to the other quarters. So do we think that there's a new base?