Citi Pharma Earnings Up 4% in 3QFY25

Staff Report:

Karachi: Citi Pharma Limited (CPHL) announced 3QFY25 result on Wednesday where in company posted earnings of Rs220mn (EPS Re0.96) as compared to net earnings of Rs211 (EPS Re0.93) during the same period last year, up by 4%YoY.

The earning slightly grew mainly due to expansion in gross margins and lower effective taxation. During 3QFY25, the company’s topline declined by 6%YoY to Rs3.3bn, primarily due to depressed international API prices, which are linked to falling crude oil prices.

Additionally, lower volumetric sales in the pharma sector further contributed to the decline. The company’s gross margin stood at 15% in 3QFY25 versus 13% in the same period last year. We believe, this improvement is likely driven by a higher contribution from formulations in the revenue mix, which typically carry higher margins than APIs.

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Finance cost clocked in at Rs99mn (up 126%YoY) during 3QFY25 amid higher borrowings during the period. In 3QFY25, the company posted effective taxation of 25% as compared to 42% during the same period last year.

“We maintain ‘Buy’ stance on the company with target price of Rs217,” Sherman Research said.