Lupin Limited sees explosive profit surge in Q1 FY2025

Lupin Limited has reported a remarkable financial performance for the quarter ending June 30, 2024. The pharmaceutical giant’s sales for Q1 FY2025 reached INR 55,143 million, marking a 12.7% increase from Q4 FY2024 and a 16.3% rise from Q1 FY2024. The company’s EBITDA surged by 27.5% quarter-on-quarter to INR 13,088 million, a 48.9% year-on-year increase.

Lupin Limited’s impressive performance in Q1 FY2025 is highlighted by a substantial EBITDA margin of 23.7%, an improvement from 21.0% in the previous quarter and 18.5% a year ago. The profit before tax (PBT) nearly doubled from Q4 FY2024, reaching INR 9,930 million, representing a 99.5% growth. The profit after tax (PAT) skyrocketed by 118.8% quarter-on-quarter to INR 8,055 million, up 77.7% from Q1 FY2024.

Strong Financial Highlights

Lupin Limited’s gross profit for Q1 FY2025 was INR 37,697 million, compared to INR 33,213 million in Q4 FY2024, with a gross margin of 68.4%. Personnel costs constituted 17.6% of sales, amounting to INR 9,710 million. Manufacturing and other expenses were at 29.0% of sales, totaling INR 15,985 million. The company’s PBT of 18% was driven by robust performance and the absence of the previous quarter’s INR 2,013 million impairment charge. Investment in R&D stood at INR 3,500 million, accounting for 6.3% of sales.

Balance Sheet and Capital Expenditure

As of June 30, 2024, Lupin Limited’s operating working capital was INR 61,686 million, with capital expenditure for the quarter at INR 1,117 million. The company’s net debt was INR (195) million, maintaining a net debt-equity ratio of 0.00.

Nilesh Gupta, Managing Director of Lupin Limited, commented on the results, attributing the strong quarter to momentum from FY2024, new product launches, and improved operating margins and profitability. Gupta emphasized the company’s focus on sustainable growth, sales expansion, and operational efficiencies.

Regional Performance Highlights

In North America, Lupin Limited reported Q1 FY2025 sales of INR 20,408 million, a 7.4% increase from Q4 FY2024 and a 28.3% rise from Q1 FY2024, accounting for 37% of global sales. U.S. sales reached USD 227 million. The company received six ANDA approvals from the U.S. FDA and launched three products during the quarter, maintaining its position as the third-largest pharmaceutical player in the U.S. generics market.

In India, Q1 FY2025 sales were INR 19,259 million, up 20.3% from Q4 FY2024 and 17.5% from Q1 FY2024, accounting for 35% of global sales. The company launched three new brands across various therapies and ranked as the seventh-largest company in the Indian Pharmaceutical Market.

Global Market Expansion

Lupin Limited’s growth markets, including Latin America and Asia-Pacific, reported Q1 FY2025 sales of INR 5,151 million, up 1.1% from Q4 FY2024 and 26.7% from Q1 FY2024. Sales in Europe, the Middle East, and Africa (EMEA) were INR 5,031 million, accounting for 9% of global sales, despite a 5.4% decline from Q4 FY2024.

The company’s global API sales grew by 40.3% quarter-on-quarter to INR 3,622 million, representing 7% of global sales. Investment in R&D continued with INR 3,500 million for Q1 FY2025. Lupin received six ANDA approvals from the U.S. FDA, bringing cumulative ANDA filings to 430, with 325 approvals to date.

Lupin Limited’s impressive financial performance is a testament to its strategic focus on key markets and operational efficiency. The significant growth in EBITDA and PAT demonstrates the company’s strong position in the pharmaceutical industry, and the continuous investment in R&D ensures a robust pipeline of products for future growth.

Related Developments

Lupin’s strong performance can be attributed to several strategic moves, including increased market share in the U.S. and the launch of new products such as Spiriva and Mirabegron. The company also divested its women’s health specialty business in the U.S. to Evofem Biosciences, further optimizing its portfolio​.

What are Lupin Limited’s Q1 FY2025 results?

Lupin Limited reported Q1 FY2025 sales of INR 55,143 million, a 12.7% increase from Q4 FY2024. The company’s EBITDA was INR 13,088 million, and PAT was INR 8,055 million.

How did Lupin Limited perform in the U.S. market in Q1 FY2025?

Lupin Limited’s U.S. sales for Q1 FY2025 reached USD 227 million, driven by market share gains and new product launches.

What were the key factors behind Lupin’s Q1 FY2025 performance?

The strong performance was due to new product launches, market share gains, operational efficiencies, and a focus on sustainable growth.