Lupin Ltd is a multinational pharmaceutical company, incorporated in the year 1968. It is the eighth-largest generic pharmaceutical company in terms of revenue globally. The company’s key business areas are Cardiovascular, anti-infectives, diabetology, paediatrics, asthma and anti-tuberculosis
Financial for the year 2017-18:
1. Overall revenue of Q2FY19 stood at Rs. 3951.06 crores increased by 2.5% QoQ Vs Rs 3,856 crores in Q1FY19. On YoY, basis revenue was flat at Rs 3952 crores in Q2FY18.
2. Sales in this quarter were up by 0.4% YoY at Rs. 3890.9 crores where sales in India were Rs 1203.2 crores up by 4% YoY. Sales in North America declined by 8% YoY at Rs. 248.7 crores. EMEA sales increased by 7% at Rs. 294.9 crores. LATAM sales were at Rs 145.9 crores up by 5%. APAC sales stood at Rs. 619.9 crores down by 2% YoY. The API segment, sales surged by 26% at R. 334.7 crores.
3. The US branded business was USD 8 million as compared to USD 20 million in the previous year. The decline was due to competition in Methergine and Suprax.
4. EBITDA was at 780.3 crores vs. 927.1 crores it declined by 15.8% on a YoY basis, EBITDA increased on a quarterly basis by 18.8%. EBITDA Margin stood at 20.1% in this quarter and the company aims to maintain the margins at 18%-20% in future as well.
5. Gross Margins of the company in this quarter went up to 64.2% Vs 61.7% in the previous year. Out of this, about 60%-70% was from Forex and the remaining 30%-40% are for other reason.
6. Net Profit stood at Rs. 266 crores declined by 41.5% YoY basis as compared to Rs 455 crores in the previous year. It was up by 31.2% on QoQ basis.
7. Profit before Tax declined by 27.3% from Rs. 607 crores in Q2FY18 to Rs. 441 crores in Q2FY19. The effective Tax rates surged in this quarter due to some losses made in certain of the company’s subsidiaries.
8. The company posted other incomes of Rs. 231 crores in this quarter Vs Rs 714 crores in the previous year and Rs. 184 crores in the previous quarter.
9. R&D expenses stood at Rs. 3800 crores in this quarter and 9.7% of the sales on 9 sites globally.
10. The company launched a speciality drug in the US Solosec on this the company incurred USD 12-13 million expenses on the product and the run-rate and this is expected to continue in FY20E. The company had revenue of USD 1 million in Q2FY19 from this drug. They have seen good ramp up of 68% preferred formula access and 90% of overall access. The impact of this drug will be seen in FY20E.
11. In H1FY19 there was an increase in working capital due to the increase in the stocking.
12. The Forex impact in this quarter was about Rs. 200 crores. About 5% of India’s growth was seen due to forex.