 "Lupin")
Mumbai-based drug major Lupin posted a 12 per cent year on year rise in sales for the fourth quarter of the fiscal 2022-23, and a profit after tax of Rs 242.4 crore as against a loss of Rs 511.9 crore in the corresponding quarter last fiscal.
The revenue growth came from a strong API business performance along with US and domestic market sales growth.
In Q4FY22 Lupin had posted a loss due to rising costs, price erosion in the US and impairment expense of Rs 126.7 crore for US-based Gavis.
The results have beat the street estimates as analysts had mostly expected the company to post a 7-8 per cent rise in revenues riding on the US business (bowel drug) and sequential improvement in the domestic market.
For the full fiscal, however, the sales growth is muted at 0.5 per cent to Rs 16,270 crore. The full year PAT came in at Rs 447.7 crore as against a loss of Rs 1509 crore in FY22. The 2021-22 numbers were impacted by the Glumetza (diabetes drug) litigation and settlement expense in the second quarter, and an impairment expense of Rs 707.7 crore for Solosec.
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Commenting on the results, Nilesh Gupta, Managing Director, Lupin Limited said, “We were able to drive continued improvement in operating margins on account of improved growth in India, improvement of margins in the US as well as growth in other areas like our API business, EMEA and APAC regions.”
He added that Lupin’s India business recorded a 15 per cent growth according to IQVIA, excluding diabetes.
“In the US we improved our margins for the third quarter in a row through maximizing our portfolio, optimizing expenses and more focused R&D investment into complex products,” Gupta added.
“We are committed to sustaining this positive momentum into the new year and drive strong growth across our regions, in particular India and the US aided by our recent sales force expansion and material new product launches respectively.”
In 2022-23 North America contributed 33 per cent of Lupin’s consolidated revenues, while India contributed 37 per cent.
During the fourth quarter, the company’s formulations business has grown by 10 per cent, while the API business has posted a strong 46.5 per cent growth.
India Region Formulations sales declined by 3.1 per cent in the quarter as compared to Q3 FY2023; up 8.9 per cent as compared to Q4 FY2022, the company said.
Global API sales for FY2023 were Rs 1,109.2 crore, up 12 per cent as compared to Rs 9,90.4 crore in FY2022; accounting for 7 per cent of Lupin’s global sales. Q4 FY2023 sales were Rs 322.6 crore, up 14.6 per cent compared to Rs 281.5 crore in Q3 FY2023; up 46.5 per cent compared to Q4 FY2022.
Investment in R&D for the quarter was Rs 305 crore (7 per cent of sales).
