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Lupin shares fall over 6%, pharma major expresses optimism regarding future growth, product launches
KV Prasad Jun 13, 2022, 06:35 AM IST (Published)
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Summary
In an interaction with CNBC-TV18, Vinita Gupta, CEO, Lupin, expressed optimism regarding future growth and product launches, particularly in the US market. She emphasised Lupin’s efforts to bring affordable versions of important drugs to the market. Gupta stated, “Depending on what happens with Myrbetriq, there should definitely be a good upside.”
Lupin announced its financial results for the January-March quarter of fiscal year 2024 on Monday, May 6. The shares of the pharmaceutical company witnessed a sharp decline of over 6% during morning trades on Tuesday, May 7 reacting to the earnings report.
The company reported a consolidated net profit of ₹359.43 crore, marking a 52% year-on-year rise from ₹235.96 crore in the same period last year. Revenue rose by 13% year-on-year to ₹4,895.11 crore from ₹4,330.3 crore. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) jumped 66% year-on-year to ₹1,026.1 crore from ₹615 crore.
Despite the strong financial performance, Lupin’s shares experienced a sharp decline of over 6% during morning trades on Tuesday. The stock reached an intra-day low of ₹1,581.10 per share on the National Stock Exchange (NSE).
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In an interaction with CNBC-TV18, Vinita Gupta, CEO, Lupin, expressed optimism regarding future growth and product launches, particularly in the US market. She emphasised Lupin’s efforts to bring affordable versions of important drugs to the market. Gupta stated, “Depending on what happens with Myrbetriq, there should definitely be a good upside.”
US sales in Q4 FY2024 were ₹1,900.6 crore, accounting for 39% of Lupin’s global sales, with a marginal increase of 0.6% compared to the previous quarter. India sales in Q4 FY2024 were ₹1,601.5 crore, accounting for 33% of Lupin’s global sales, showing a decrease of 7.2% compared to the previous quarter. Global API sales in Q4 FY2024 were ₹258.1 crore, accounting for 5% of Lupin’s global sales, showing a decrease of 7.1% compared to the previous quarter.
The EBITDA margin stood at 14.2%, compared to 11.5% in the year-ago period. Profit Before Tax was impacted by an impairment charge of ₹201.3 crore. Investment in research and development (R&D) for the quarter was ₹425.5 crore, accounting for 8.7% of sales.
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Ramesh Swaminathan, ED & CFO, Lupin, highlighted the company’s focus on margin improvement and expressed confidence in sustaining a 20% margin over the next several quarters. He noted, “The buoyancy on the top line is certainly going to continue.”
Nilesh Gupta, MD, Lupin, acknowledged the challenges faced in the Indian market but expressed confidence in the company’s growth prospects, especially in areas like cardiology and respiratory. He stated, “April has started strong and we would expect growth to continue.”
Looking ahead, Lupin remains optimistic about sustaining growth and margin improvement, particularly in the US market. The company aims to continue its focus on product launches and expanding its presence across various therapeutic segments.
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