Q1 Earnings Weighed Down By U.S. Business, Analysts Cautious

Most analysts downgraded or expect a limited upside for Lupin Ltd., citing uncertainties and contraction in the U.S. business.

The drugmaker’s net profit rose 18% sequentially to Rs 542.5 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 474.4-crore profit estimate of analysts tracked by Bloomberg.

The bottom line of India’s sixth largest pharma company was aided by Rs 373.4 crore ($50 million) received from Boehringer Ingelheim towards successful achievement of key milestones for its clinical stage MEK inhibitor compound, the company said.

• Revenue rose 13% sequentially to Rs 4,237.4 crore. Analysts expected Rs 4,178.6 crore.

• Ebidta increased 31% to Rs 894.8 crore against the estimated Rs 884.1 crore.

• Margin rose to 21.1% from 18.2%, compared with the estimate of 21.2%.

Other Highlights (QoQ)

• India sales rose 27.2% to Rs 1,636.2 crore, contributing 42% to total sales (excluding licensing income).

• U.S. business contracted 10.8% to Rs 1,333 crore, comprising 35% of total revenue.

• Lupin’s Europe, Middle-East and Africa sales saw a 30.3% decline, contributing 7% of the total revenue.

• Bulk drugs business contracted 3.8% this quarter.

The company remains committed to grow the U.S. business though existing products and a ramp-up of Albuterol and Brovana (both respiratory distress drugs), Nilesh Gupta, managing director at Lupin, said in the earnings statement.

Here’s what brokerages have to say about Lupin’s Q1 FY22 performance: