Lupin Q2 results update
Last updated: 05 Nov, 2020 | 11:12 am
Earnings meets estimates: Lupin has reported a net profit of ₹211.02 crore in Q2FY21, compared to a net loss of Rs 127.07 crore during the same period last year. The company’s profit recovered mainly due to a rebound in its US business. The profit grew 97% on a QoQ basis.
Revenue declines marginally: Consolidated total revenue from operations of the company stood at Rs 3,835 crore for the Jul-Sep period, a decline of 1.2% on-year.The decline was mainly due to a decline in India sales, which is the second-largest market after US making up 35% of the total sales. India sales saw a decline of 0.7% drop on year to ₹1,323.30 crore. Lupin is now the 6 th largest company in the Indian Pharmaceutical Market. The chart below shows Lupin’s sales mix.
Margins improve: Lupin’s EBITDA margin grew by 10 bps to 16.8% in the quarter. The EBITDA declined 21.1% on-year to ₹606.1 crore. The Company launched 7 products during the quarter in the US market and now has 181 products in the US generics market. Lupin is now the market leader for 62 products in the US generics market.
Management commentary: “We are very pleased with the strong recovery of our business during the quarter, demonstrated by sequential growth across all our geographies, in particular US and India,' Lupin said.
Lupin was able to turn in a profit in the quarter, aided by a recovery in its US business. Revenues in the North America market, which has grown 5.6% on-year. This makes up 37% of total sales.The company expects to sustain the momentum on margin improvement led by optimisation efforts underway and strong growth in its key businesses.