Lupin Q1 Review - Disappointing Quarter: Dolat Capital

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Lupin's manufacturing facility in Goa. (Photo: Company website)

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Dolat Capital Report

Lupin Ltd.'s revenue declined by 12.3% YoY to Rs 37.4 billion in Q1 FY23 (below our estiamte) mainly due to lower than expected Indian and U.S. business.

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Ebitda stood at Rs 1.6 billion (below our estimate) declined by 82.3%YoY/27.6% YoY/QoQ, and Ebitda margin contracted by 1730 basis points/145 bps YoY/QoQ to 4.4% on higher operating cost and lower gross margins which contracted by 720 bps/100 bps YoY/QoQ impacted by higher input cost, inventory de-stocking and U.S. price erosion.

Lupin has reported loss of Rs 890.8 million in Q1 FY23. After adjusting forex, loss was at Rs 1.4 billion versus profit of Rs 5 billion in Q1 FY22.

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