Lupin records PAT of Rs 211 cr in Q2 FY21

The drug major reported a consolidated net profit of Rs 211 crore in Q2 FY21 compared with net loss of Rs 127.1 crore in Q2 FY20.

Net sales during the quarter declined by 1% year-on-year (YoY) to Rs 3781.80 crore. On the segmental front, revenue from the formulations business was at Rs 3407.9 crore (up 1.1% YoY) and revenue from the API business was at Rs 373.9 crore (up 22.5% YoY) in Q2 FY21.

In the formulations business, the revenue growth was led by North America (up 5.6% YoY) and Europe, Middle East, and Africa (EMEA) region (up 2% YoY). The biggest revenue contraction was witnessed in the ROW (Rest-of-the-World) market (down 27.4% YoY) followed by Growth Markets (down 3.7% YoY) and India (down 0.7% YoY).

EBITDA declined 21.1% to Rs 606.1 crore in Q2 September 2020 from Rs 768.5 crore in Q2 September 2019. EBITDA margin was at 16% as on 30 September 2020 as against 20.1% as on 30 September 2019.

The company recorded a pre-tax profit of Rs 359.8 crore in Q2 FY21 as compared to a pre-tax loss of Rs 113.1 crore in Q2 FY20. Tax expense during the second quarter surged 111.1% to Rs 146.7 crore from Rs 69.5 crore in the same period last year.

Investment in R&D was Rs 384.3 crore (10.2% of sales) for Q2 FY2021 compared to Rs 357.5 crore (10.3% of sales) for Q1 FY2021.

Commenting on the results, Nilesh Gupta, managing director, Lupin, said, "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. This quarter marks the start of monetization of our complex generic pipeline with the launch of Etanercept biosimilar in Europe and generic Albuterol in the US. We expect to sustain the momentum on margin improvement led by optimization efforts underway and robust growth in our key businesses."

Lupin is an innovation-led transnational pharmaceutical company. The company develops and commercializes a wide range of branded and generic formulations, biotechnology products and APIs in over 100 markets.

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