Lupin Raises Ebitda Margin Guidance For Upcoming Quarters To 19.5-20%: CFO

Lupin Ltd. has raised guidance for Ebitda margin in the 19.5-20% range for the coming quarters, citing growth in volume,new products and a price hike, according to Chief Financial Officer Ramesh Swaminathan.

That compares with the 18% target set for fiscal 2024.

The pharma company aspires for its Indian businesses to "grow at 30% higher than the Indian pharma market growth of 8%", Swaminathan told NDTV Profit in an interview. This means the growth would be close to 10.5%, he said.

The company's net profit jumped threefold to Rs 613 crore in the quarter ended December 2023, beating the Bloomberg estimate of Rs 433 crore.

Lupin Q3FY24 Results: Profit Triple, Beat Estimates

• Revenue up 10% at Rs 5197 crore. (Bloomberg estimate: Rs 4,861 crore)

• Ebitda up 95% at Rs 1,038 crore. (Bloomberg estimate: Rs 873 crore).

• Margin expands 764 basis points to 19.97%. (Bloomberg estimate: 18%).

• Net profit up 300.65% at Rs 613 crore. (Bloomberg estimate: Rs 433 crore).

Future Guidance Summary From NDTV Profit Interview:

• For Indian businesses, they aspire to "grow at 30% higher than the Indian pharma market growth of 8%", which would mean close to 10.5%, the CFO said.

• India's growth would be supported by volume and new product growth of around 6-7% and price hikes in their non-NLEM (National List of Essential Medicines) portfolio. Since WPI for the year is flattish, there will be no price adjustment on regulated drugs.

• gSpiriva contribution in the quarter was lower due to channel filling in the second quarter, when the molecule was introduced in the U.S. market.

• Currently, the U.S. run rate of $200 million is expected to continue.

• Going forward, over FY25–29, they expect to launch new products in respiratory and complex injectables. These, together with oral solid dosages, could lead to yearly U.S. revenues of $1–1.25 billion, up from the current $800 million.

• The company is also "confident of secular growth across other markets".

• The Red Sea conflict has led to freight costs rising by 30%, but the CFO said that it should not be significant enough to derail the business; nonetheless, they are cautiously watching.

Watch the full interview here