Lupin Q4 Results: Posts Surprise Loss On Higher Input Costs, U.S. Price Erosion
Lupin Ltd. reported a surprise loss in the fourth quarter on higher input and freight costs, and impairment.
The drugmaker reported a net loss of Rs 518 crore in the January-March period as against a Rs 460-crore profit in the previous year, according to its exchange filing. That compares with the Rs 296-crore consensus profit estimated by analysts tracked by Bloomberg.
Lupin Q4 FY22 Highlights (YoY)
Revenue rose 3% to Rs 3,883 crore against the Rs 4,070-crore forecast.
Operating profit stood at Rs 228 crore, down 68%, against the Rs 558-crore forecast.
Margin contracted to 5.9% from 18.7%. Analysts had projected it at 13.7%.
Quarter ended impairment charges include Rs 129 crore towards acquired intellectual property written off consequent to adverse market conditions.
Research and development expenses stood at 8.9% of sales this quarter.
India sales rose 5% to Rs 1,351 crore.
U.S. business fell 5% to Rs 1,416 crore.
Lupin's Europe, Middle-East and Africa sales rose 9%.
Bulk drugs business fell 14%.
Growth markets (Latin America and APAC) saw a 26% rise, while the rest of the world sales doubled.
The company filed 10 abbreviated new drug applications in the U.S. this quarter and received two approvals from the U.S. Food and Drug Administration, and launched two products in the quarter. It also launched one brand each in anti-diabetic, anti-viral and vaccine management therapies.
“The current quarter was challenging with headwinds in the U.S. on account of price erosion, and inflation in input materials and freight," Nilesh Gupta, managing director at Lupin, said in the exchange filing. The other markets continued solid growth in revenues and profitability, he said.
FY22 Highlights (YoY)
After-tax loss of Rs 1,528 crore as against net profit of Rs 1,217 crore.
Revenue was up 8% at Rs 16,405 crore.
Overall Ebidta was down 92%. Excluding Solosec impairment and business compensation expense for Glumetza in Q2FY22, Ebidta was up 14.6%.
Overall operating margin stood at 1.3% versus 17.5%.
India sales rose 14%, contributing 38% to the total. It is the sixth largest company in the Indian pharmaceutical market, according to IQVIA MAT March 2022.
U.S. business grew 4%, contributing 36% of total revenue. The company continues to be the third largest pharmaceutical player in both U.S. generic market and U.S. total market by prescriptions, according to IQVIA MAT March 2022.
Lupin's Europe, Middle-East and Africa sales rose 6%, contributing 9% of the total revenue.
Bulk drugs business fell 28%, accounting for 6% of the total revenue.
Growth markets (Latin America and APAC) saw a 17% rise, while the rest of the world sales rose 25%.
Net debt-equity as on March 31 stood at 0.16.
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