Lupin Q1 Results Highlights: 77.2% PAT Growth in Q1 FY25, Revenue Up 16.2%

Lupin Q1 Results Highlights

Mumbai-based Lupin reported a 77.2% year-on-year increase in profit after tax (PAT) for the first quarter of the financial year FY25, ending June 30, reaching ₹801 crore. The company's operational revenue rose by 16.2% year-on-year to ₹5,514.3 crore. This PAT growth was driven by new product launches and strong performances in key regions.

Sequentially, Lupin saw a 122.9% increase in PAT, with a 12.6% rise in revenue. The Ebitda (earnings before interest, tax, depreciation, and amortization) margin grew by 48.9% year-on-year, amounting to ₹1,308.8 crore.

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

In Q1 FY25, sales in North America reached ₹2,040.8 crore, marking a 7.4% increase from ₹1,900.6 crore in Q4 FY24 and a 28.3% rise from ₹1,590.5 crore in Q1 FY24, accounting for 37% of Lupin’s global sales.

US sales for Q1 FY25 amounted to $227 million, up from $209 million in Q4 FY24. During this period, Lupin received 6 ANDA approvals from the US FDA and launched 3 new products. The company now offers 161 generic products in the US and ranks 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 ranks among the top 3 for 103 of its marketed products (IQVIA Qtr. June 2024).

For Q1 FY25, India formulation sales were ₹1,925.9 crore, a 20.3% increase from ₹1,601.5 crore in Q4 FY24, representing 35% of Lupin’s global sales. The company introduced 3 new brands in 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).

Impact on Lupin Share Price Post Q1 Results

Shares of Lupin surged over 6% in early trade, reaching a 52-week high of ₹2,029.95 on August 7, following the company's strong performance in the April-June quarter.

By 09.20 am IST, Lupin shares were trading at ₹1,976.05 on the NSE. This growth was fueled by significant double-digit sales increases in both the India formulations and the US business. 

According to brokerage firm Nomura, the boost in US sales was largely due to the launch of the bladder drug Myrbetriq, which offset the lower contribution from the bowel medication Suprep.

"We have had a strong quarter, building on the momentum from FY24. Our performance has been driven by new products, key geographies, and improvements in operating margin and profitability. We are on track for sustainable growth and margin enhancement, supported by increased sales, commercial and operating efficiencies, and strong compliance," stated Nilesh Gupta, Managing Director of Lupin.

During the quarter, the company allocated ₹75 crore for the settlement of the diabetes drug Glumetza. Excluding this amount, Nomura calculated Lupin's EBITDA margin at 24.7%. The brokerage also noted that the EBITDA margin benefited from reduced research and development expenses, which decreased by 5% year-on-year to 6.3% of total sales.

A notable milestone for Lupin in Q1 was turning net cash positive. The company reported net cash of ₹19.50 crore, compared to a net debt of ₹480 crore in Q4 FY24 and ₹1,300 crore at the end of the same period last year.

Nomura predicts that the positive trends across Lupin's businesses will drive further expansion of its EBITDA margin and earnings growth. The brokerage also sees significant potential from the generic version of the hyponatremia drug Tolvaptan, which could further enhance its current projections.

About Lupin Ltd

Lupin Ltd (Lupin) is a global pharmaceutical company focused on developing and distributing a wide array of healthcare products. The company's portfolio features generics, branded generics, complex generics, APIs, biosimilars, and specialty medicines. Lupin's products address various therapeutic areas, including respiratory, cardiovascular, anti-diabetic, anti-infective, gastrointestinal, central nervous system, and women's health, thereby serving patients and communities around the world.