Lupin Limited continues momentum in Q1 FY2024: Insights into earnings and sales

Pharmaceutical giant Lupin Limited reported its Q1 FY2024 financial performance, indicating a gross profit of INR 31,013 million, up from INR 25,803 million in Q4 FY2023. The gross margin stands at 65.4%, while personnel cost and manufacturing expenses show notable changes compared to the previous quarter.

Key Financial Highlights

Operating Working Capital: INR 51,946 million as of June 30, 2023

Capital Expenditure: INR 1,171 million for the quarter

Net Debt: INR 13,099 million as of June 30, 2023

Net Debt-Equity Ratio: 0.10 as of June 30, 2023

Comments on Lupin Q1 FY2024 Results from Managing Director, Nilesh Gupta

“Building on the momentum of the last few quarters, we had a strong quarter with good growth across all key markets as we continue to improve our operating margins driven by higher sales, better mix and cost optimization initiatives. Our India branded business has bounced back to double-digit growth despite NLEM price reductions. With the clearance of Pithampur Unit-2 we expect to add to the product approvals for the US region. Getting approvals for important complex generics like Tiotropium DPI, and getting back into the launch tempo with first to market products like Darunavir and additional new product launches will help sustain the growth momentum both in topline and bottom line as we move ahead.”

Sales Performance Across Various Markets

• North America: Sales were INR 15,905 million, up 2.6% from Q4 FY2023 and 57.4% from Q1 FY2023.
• India: Formulation sales stood at INR 16,384 million, a 10.8% growth compared to Q4 FY2023.
• Growth Markets (LATAM and APAC): Registered a decline in sales by 7.3% from Q4 FY2023.
• Europe, Middle-East, and Africa (EMEA): Sales were INR 3,987 million, down 12.1% from Q4 FY2023.
• Global API Sales: Stood at INR 3,371 million, up 4.5% compared to Q4 FY2023.

Investments in Research and Development

Investment in R&D for Q1 FY2024 was INR 3,679 million (7.8% of sales). The company received approval for 4 ANDAs from the U.S. FDA, making it the third-largest pharmaceutical player in the U.S. generic market.

Conclusion

Lupin Limited’s Q1 FY2024 results depict a strong growth pattern across various key markets. With initiatives in R&D and a focus on cost optimization, Lupin continues to be a significant player in the global pharmaceutical landscape, showing promise in the U.S., India, LATAM, APAC, and EMEA regions.