Lupin Q3 Results: Profit Drops 72%, Revenue Rises

Lupin Ltd.'s net profit fell in the quarter ended December due to a high base, missing estimates.

Nilesh Gupta, managing director at the company, said the sales in the U.S. improved on the back of new product launches and brand acquisition made during the quarter. Excluding the impact of genericization on their diabetes portfolio, the India business performed in line with the market, he said.

"With the recent sales force expansion and new product launches, we expect to be back to above-market growth," Gupta said, in the exchange filing.

Other Highlights (YoY)

• India sales rose 3% to Rs 1,521 crore, contributing 36% to the total revenue.

• U.S. business fell 3% to Rs 1,527 crore, contributing 36% of total revenue.

• Lupin's Europe, Middle East and Africa sales rose 11%, making up 9% of the total revenue.

• Growth markets (Latin America and APAC) saw a 24% rise, while the rest-of-the-world sales rose 17%, accounting for 10% and 3% of the revenue, respectively.

• The bulk drugs business was up 10%, accounting for 6% of the total revenue.

• Research and development expenses stood at 6.8% of sales this quarter.

• Net debt-equity, as on Dec. 31, stood at 0.27.

The company filed seven abbreviated new drug applications in the U.S. this quarter, received two approvals from the U.S. Food and Drug Administration, and launched four products in the quarter.

The company said that, according to the IQVIA MAT December 2022, 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 is also the sixth largest in India.

Shares of Lupin closed 0.15% lower on Thursday before the results were announced, compared with a 0.23% rise in the benchmark Sensex.