Lupin Q1 result: Profit jumps 77% to Rs 801 cr on strong performance

Mumbai-headquartered Lupin posted a 77.2 per cent year-on-year (Y-o-Y) increase in profit after tax (PAT) during the first quarter of the financial year FY25, ending on June 30, reaching Rs 801 crore. Lupin’s revenue from operations increased by 16.2 per cent Y-o-Y to Rs 5,514.3 crore. This increase in PAT was attributed to new product launches and strong performance in key geographies.

On a sequential basis, the company exhibited a significant 122.9 per cent increase in PAT, with revenue also increasing by 12.6 per cent. The Ebitda (earnings before interest, tax, depreciation, and amortisation) margin rose by 48.9 per cent Y-o-Y, reaching Rs 1,308.8 crore.

Commenting on the results, Nilesh Gupta, managing director, Lupin Limited, said, “We have had a strong quarter on the back of the momentum we built through FY24, with performance driven by new products, key geographies, and improvement in our operating margin and profitability. We are on track for strong, sustainable growth and margin improvement backed by growth in sales, commercial and operating efficiencies, and a strong compliance story.”

As of June 30, 2024, the company reported an operating working capital of Rs 6,168.6 crore and a capital expenditure of Rs 111.7 crore for the quarter. Notably, the company held a net debt position of Rs 195 million and a net debt-to-equity ratio of 0.00, indicating a strong financial position with more cash than liabilities.

In Q1 FY25, North America sales totalled Rs 2,040.8 crore, reflecting a 7.4 per cent increase from Rs 1,900.6 crore in Q4 FY24 and a 28.3 per cent rise from Rs 1,590.5 crore in Q1 FY24. This region accounted for 37 per cent of Lupin’s global sales.

Specifically, US sales for Q1 FY25 were $227 million, compared to $209 million in Q4 FY24. During the quarter, the company received 6 ANDA approvals from the US FDA and launched 3 new products. Lupin now offers 161 generic products in the US and maintains its position as the 3rd largest pharmaceutical player in both the US generics market and the total US market by prescriptions (IQVIA Qtr. June 2024). Lupin leads in 50 of its marketed generics in the US and is among the top 3 in 103 of its marketed products (IQVIA Qtr. June 2024).

For Q1 FY25, India formulation sales reached Rs 1,925.9 crore, marking a 20.3 per cent increase from Rs 1,601.5 crore in Q4 FY24. This represents 35 per cent of Lupin’s global sales. The company launched 3 new brands across Cardio, Neuro/CNS, and GI therapies during the quarter. Lupin is ranked as the 7th largest company in the Indian pharmaceutical market (IQVIA MAT June 2024).

Europe, Middle East, and Africa (EMEA) sales for Q1 were Rs 503.1 crore, down 5.4 per cent from Rs 531.8 crore in Q4 FY24, accounting for 9 per cent of Lupin’s global sales. In South Africa, Q1 FY25 sales amounted to ZAR 337 million, compared to ZAR 438 million in Q4 FY24 and ZAR 295 million in Q1 FY24. Lupin is the 8th largest generics player in South Africa’s total generics market (IQVIA MAT May 2024).

For this quarter, global API sales reached Rs 362.2 crore, marking a 40.3 per cent increase from Q4 FY24. This segment accounted for 7 per cent of Lupin’s global sales.

The company invested Rs 350 crore (6.3 per cent of sales) in research and development (R&D) for the quarter. Lupin received 6 ANDA approvals from the US FDA during the quarter. As of June 30, 2024, Lupin has submitted a total of 430 ANDA filings to the US FDA, with 325 approvals granted. The company now has 50 First-to-File (FTF) filings, including 17 exclusive FTF opportunities, and cumulative US DMF filings stand at 157 as of June 30, 2024.