Lupin Ltd. reported strong operational performance in the October to December quarter accompanied with margin expansion.
Profit rose 20.7 percent in the October-December quarter, largely in line with analyst estimates.
Net profit rose to Rs 633.1 crore from Rs 524.6 crore in the corresponding quarter of the previous year, the company said in a press release. The consensus estimate of analysts tracked by Bloomberg stood at Rs 619.7 crore. Higher tax expense during the quarter restricted profit growth to 20.7 percent.
Revenue increased 26.4 percent to Rs 4,482.8 crore from Rs 3,547.9 crore in the year-ago period.
Earnings before interest, tax, depreciation and amortisation jumped 43.7 percent to Rs 1,215.8 crore as against Rs 846.1 crore last year, aided by higher sales in the U.S. and lower material costs. EBITDA margins expanded 330 basis points to 27.1 percent from 23.8 percent.
The management attributed the performance to consistent growth across key markets.
This has been a particularly strong year for our U.S generic business. We had another strong quarter driven by consistent growth across key markets be it the U.S., India, Japan, EMEA (Europe, Middle East, Africa), APAC (Asia-Pacific) and Latin America. I am also happy to share that we have made significant progress on evolving our complex generic pipeline and our stellar compliance record continues.Nilesh Gupta, Managing Director, Lupin
Formulations Business Performance
- U.S. sales stood at $316 million, an increase of 8 percent sequentially and 57 percent year-on-year, surpassing analysts' estimates.
- India sales rose 11.9 percent to Rs 991.2 crore, at the lower end of analysts' estimates of 10-15 percent growth, with some impact of demonetisation.
- Latin America sales increased 32.8 percent to Rs 117.5 crore.
- Asia Pacific sales improved 20.9 percent, while Europe sales rose 16.8 percent.
Research Spends
Investment in research stood at Rs 568.2 crore or 12.9 percent of sales as compared to 11.4 percent in the July to September quarter.
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