Lupin Q2 Results: Net Profit In Line With Estimates
Lupin reported a net profit of Rs 130 crore in the second quarter compared with a net loss of Rs 2,098 crore a year earlier.
Lupin Ltd. reported a net profit, in line with analyst estimates, in the quarter ended September.
The company reported a net profit of Rs 130 crore in the second quarter compared to a net loss of Rs 2,098 crore in the previous year, according to the drugmaker's exchange filing. That compares with the Rs 128 crore consensus estimate of profits by analysts.
Lupin Q2 FY23 Highlights (YoY)
Revenue rose 1% to Rs 4,146 crore against the Rs 4,118-crore forecast.
Operating profit stood at Rs 434 crore versus a net loss of Rs 1,316 crore in the previous year. That compares to an estimate of Rs 439 crore.
Margins stood at 10.5%. Analysts had projected it at 10.7%.
Lupin performed in line with expectations during the quarter, said Nilesh Gupta, managing director at the company, in the exchange filing.
"Our sales growth sequentially was robust as our U.S. business bounced back. Our India business delivered continued growth in line with the market, excluding the impact of loss of exclusivity and certain sales in the diabetes and cardiovascular therapy area."
All other geographies had performed well, and they continued to see the benefit of optimisation measures implemented, he said.
Other Highlights (YoY)
India sales rose 3% to Rs 1,584 crore, contributing 39% to the total revenue.
U.S. business fell 7% to Rs 1,330 crore, contributing 33% of total revenue.
Lupin’s Europe, Middle East, and Africa sales rose 10%, making up 9% of the total revenue.
The bulk drugs business fell 7%, accounting for 6% of the total revenue.
Growth markets (Latin America and APAC) saw a 28% rise, while the rest-of-the-world sales surged 50%, accounting for 11% and 2% of the revenue, respectively.
Research and development expenses stood at 8.3% of sales this quarter.
Net debt equity, as of Sept. 30, stood at 0.25.
The company filed eight abbreviated new drug applications in the U.S. this quarter, received four approvals from the U.S. Food and Drug Administration, and launched three products in the quarter.
The company said that, as per IQVIA MAT September 2022, it continues to be the third largest pharmaceutical player in both the U.S. generic market and the U.S. total market by prescriptions. It is also the sixth largest in India.
Shares of Lupin closed 2.22% lower before the results were announced, compared with a 0.25% decline in the benchmark Sensex.
Watch Lupin's Ramesh Swaminathan talk about the road ahead for the pharma major: