- 07 Aug 2024
- ICICI Securities
LUPIN Q1FY25 – ACROSS THE BOARD GROWTH PROPEL NUMBERS
LUPIN - 2027 Change: 57.05 (2.90 %)News: Revenues grew ~16% YoY to ₹ 5514 crore driven by the US, India, (EMEA) markets and Growth markets which grew by 28%, 18%, 26% and 27% respectively. EBITDA grew 50% YoY to ₹ 1286 crore and EBITDA margins stood at ~23% (520 bps improvement) mainly on the back of strong GPMs (69% vs 66%). US sales grew ~28% YoY to ₹ 2041 crore on the back market share gains in legacy products (respiratory drug gSpiriva main contributor) and 3 new launches. India sales grew ~18% to ₹ 1926 crore driven by 3 new launches and strong performance of existing products and in-licensing deals.
Views: Strong growth was attributable to timely launches across regions and sustained focus on profitability. The company has maintained the EBITDA margins trajectory of +20% mainly driven by strong GPM performance. This suggests that the product mix for the company has improved significantly with strong US performance driven by high-value complex products and decent launch momentum across markets. Going ahead the sustainability of this performance especially on the margins front would be the key determinant for investors sentiments.
Impact: Positive