Lupin Ltd share Price

Lupin is a multinational pharma company engaged in manufacturing & marketing branded & generic formulations, APIs, biotech products as well as OTC medicines across multiple dosage forms & therapeutic categories.

• It is the third largest generic player (by prescriptions) in the US with 166 generic products (market leader: 44 products; Top 3: 113 products) along with being sixth largest company in Indian pharmaceutical market
• The company was recently going through a rough patch especially on the US generics front due to plant compliance issues besides margins pressure

Lupin’s revenues from US remained subdued while profitability was hampered due to high other expenses and impairment charges (₹ 127 crore)

• Sales were up 2.6% YoY to ₹ 3883 crore
  • EBITDA was at ₹ 226.5 crore, down 68% YoY with margins at 5.8% mainly due to multiple factors namely - 1) higher input cost, 2) double digit price erosion in US, 3) losartan recalls, 4) Solosec litigation payment, 4) lower operating leverage and 5) higher freight cost
• Adjusted loss of ₹ 525 crore vs. profit of ₹ 460 crore in Q4FY21

Pharmaceuticals company Lupin announced Q1FY24 results:

• Sales of Rs 47,421 million in Q1FY24 compared to Rs 36,040 million in Q1FY23, up 31.6% YoY
• EBITDA of Rs 8,791 million in Q1FY24 compared to Rs 2,379 million in Q1FY23, up 269.6% YoY
• EBITDA margin of 18.5% in Q1FY24 compared to 6.6% in Q1FY23, up 1,190 bps YoY
• PBT of Rs 5,588 million in Q1FY24 compared to Rs 23 million in Q1FY23, up 24,516.3% YoY
• Gross Profit was Rs 31,013 million compared to Rs 25,803 million in Q4FY23, with gross margin of 65.4%
• Personnel cost was 17.8% of sales at Rs 8,444 million compared to Rs 7,730 million in Q4FY23
• Manufacturing and other expenses were 31.0% of sales at Rs 14,724 million compared to Rs 13,030 million in Q4FY23
• Investment in R&D for Q1FY24 was Rs 3,679 million (7.8% of sales)

Commenting on the results, Nilesh Gupta, Managing Director, Lupin said, “Building on the momentum of the last few quarters, we had a strong quarter with good growth across all key markets as we continue to improve our operating margins driven by higher sales, better mix and cost optimization initiatives. Our India branded business has bounced back to double-digit growth despite NLEM price reductions. With the clearance of Pithampur Unit-2 we expect to add to the product approvals for the US region. Getting approvals for important complex generics like Tiotropium DPI, and getting back into the launch tempo with first to market products like Darunavir and additional new product launches will help sustain the growth momentum both in topline and bottom line as we move ahead”.

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