Lupin Q3 Results: Profit Triples, Beats Estimates
The company reported a net profit of Rs 613 crore in the quarter-ended December, up 300% over the previous year.
Lupin Ltd.'s net profit tripled, surpassing analysts' estimates, in the third quarter of fiscal 2024.
The company reported a net profit of Rs 613 crore in the quarter-ended December, up 300% over the previous year, according to the drugmaker's exchange filing. That compares with the Rs 433-crore consensus estimate of profit by analysts polled by Bloomberg.
Lupin Q3 FY24 Highlights (YoY)
Revenue rose 20% to Rs 5,197 crore as against the Rs 4,861-crore forecast.
Operating profit stood at Rs 1,038 crore, up 95%. That compares with an estimate of Rs 873 crore.
Margin stood at 19.97% vs 12.32%. Analysts had projected it at 18%.
“We delivered our highest quarterly sales to date and crossed the 5,000 crore mark for the first time, driven by strong growth across geographies,” said Nilesh Gupta, managing director at the company, in the exchange filing.
“The U.S. continues to do well driven by demand for both inline products and new launches, and the India business continues to grow ahead of market with strong growth across our key therapies.”
This positive growth momentum coupled with cost optimisation measures and operating leverage helped the company deliver solid performance, Gupta said.
Other Highlights (YoY)
India sales rose 13% to Rs 1,725 crore, contributing 34% to the total revenue.
U.S. business gained 24% to Rs 1,889 crore, contributing 37% of total revenue.
Lupin’s Europe, Middle East, and Africa sales rose 36%, making up 10% of the total revenue.
The bulk drugs business fell 1%, accounting for 6% of the total revenue.
Growth markets (Latin America and APAC) saw a 13% rise, while the rest-of-the-world sales surged 71%, accounting for 9% and 4% of the revenue, respectively.
Research and development expenses stood at 7% of sales this quarter.
Net debt equity, as of Dec. 31, stood at 0.07.
The company received 14 abbreviated new drug application approvals from the U.S. Food and Drug Administration this quarter and launched three products this quarter.
The company said that, as per IQVIA MAT December 2023, 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 slipped to the seventh position in India, as per IQVIA MAT December 2023, from sixth in September.
Shares of Lupin closed 1% higher before the results were announced on Wednesday, as compared with a 0.05% decline in the benchmark Sensex.
