Lupin plunges 6% as June quarter profit tanks 60% YoY to Rs 107 crore

EBITDA tood at Rs 531.4 cror for the quarter under review, down 34.7 per cent, from Rs 813.4 crore of Q1FY20, and by 27.6 per from Rs 733.9 crore logged in Q4FY20

Shares of Lupin Ltd plummeted up to 6.2 per cent to Rs 878.15 per share on the BSE on Friday after the pharmaceutical company's net profit for April-June quarter declined 60 per cent on a yearly basis to Rs 106.9 crore. Lupin had posted a profit of Rs 264.7 crore in the corresponding period of the previous year. 

On a quarterly basis, profit tanked 72.6 per cent from Rs 389.6 crore in the March quarter of FY20. That apart, EBITDA (earnings before interest, tax, depreciation and amortisation) stood at Rs 531.4 cror for the quarter under review, down 34.7 per cent, from Rs 813.4 crore of Q1FY20, and by 27.6 per from Rs 733.9 crore logged in Q4FY20. EBITDA margin stood at 14.7 per cent in Q1, which dipped by 530 basis points from 20 per cent of Q1FY20 but expanded by 90 basis points from the margin of 13.8 per cent of Q4FY20.

"The quarter’s performance was impacted by the Covid-19 pandemic and related lockdowns, affecting our key businesses in India and US. We continue to focus on business continuity while ensuring employee safety. Despite the challenges impacting revenues, we improved margins driven by tight expense control. We expect to continue the momentum on margin improvement. This is a pivotal year for us to deliver on our key complex generic assets and to sustain the momentum on the compliance front," said Nilesh Gupta, Managing Director, Lupin Limited in a statement.

Lupin’s Q1FY21 revenue fell 9 per cent YoY to Rs 3,530 crore. This was dragged down by decline in US sales by 21.1 per cent YoY and 23 per cent QoQ to $157m (35 per cent of sales). Domestic Formulations (37 per cent of sales) was down 1.7 per cent YoY to Rs 1,290 crore. That apart, growth market sales (8 per cent of sales) declined 5.8 per cent YoY to Rs 270 crore. EMEA sales, too, fell 4 per cent YoY to Rs 250 crore (7 per cent of sales), and RoW sales were down 46% YoY to Rs 38.3 crore.

Lupin’s Global API sales for Q1FY21 were Rs 409 crore, compared to sales of Rs 328.6 crore during Q4FY20 and up 17 per cent compared to sales of Rs 348.9 crore during Q1FY20, accounting for 12 per cent of Lupin’s global sales.

The Company filed 4 ANDAs during the quarter and received 4 ANDA approvals from the US FDA. Furthermore, the Company launched 2 products during the quarter in the US market. The Company now has 175 products in the US generics market, it said in its statement.

Lupin is now the market leader in 62 products in the US generics market and amongst the Top 3 in 126 of its marketed products (market share by prescriptions, IQVIA June 2020).

At 10:14 am, the stock was 5 per cent lower on the BSE, at Rs 889, as againt 0.05 per cent dip in the S&P BSE Sensex.