Lupin Raises Ebitda Margin Guidance For Upcoming Quarters To 19.5-20%: CFO
The company aspires its Indian business to 'grow at 30% higher than the Indian pharma market growth of 8%', which would mean close to 10.5%, he said.
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