Lupin Ltd. reported a net profit in the quarter ended June as compared with a loss last year, surpassing analysts’ estimates.
The company reported a net profit of Rs 452 crore in the first quarter, as against a net loss of Rs 89 crore in the year-ago period, according to an exchange filing. That compares with the Rs 258 crore consensus estimate by analysts.
Sequentially, the profit surged by 92%.
“We had a strong quarter with good growth across all key markets as we continue to improve our operating margins driven by higher sales, a better mix, and cost optimisation initiatives,” said Nilesh Gupta, managing director at Lupin.
Their India-branded business bounced back to double-digit growth despite National List of Essential Medicines price reductions, he said. With the clearance of Pithampur Unit-2, they expect to add to the product approvals for the U.S. 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 the top line and bottom line as we move ahead,” Gupta said in the filing.
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India’s sales rose 10% to Rs 1,638 crore, contributing 35% to the total revenue.
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U.S. businesses grew 57% to Rs 1,591 crore, contributing 34% of total revenue.
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Lupin’s Europe, Middle East, and Africa sales increased 20%, making up 8% of the total revenue.
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Growth markets (Latin America and APAC) saw a 4% decline, while rest-of-the-world sales jumped 85%, accounting for 9% and 3% of the revenue, respectively.
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The bulk drug business was up 32%, accounting for 7% of the total revenue.
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The company also earned Rs 205 crore from the new chemical entity segment.
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Research and development expenses stood at 7.8% of sales this quarter.
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The net debt-equity ratio stood at 0.10 as of June 30.
The company received four abbreviated new drug application approvals from the Food and Drug Administration and launched three products in the U.S. this quarter.
Lupin continues to be the third-largest pharmaceutical player in both the U.S. generic market and the U.S. total market by prescriptions, according to the IQVIA MAT June 2023, the company said. It is also the sixth-largest in India.
Shares of Lupin closed 4.2% higher on Thursday before the results were announced, as compared with a 0.82% fall in the benchmark BSE Sensex.