Lupin hits new low

about 5 months ago
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Lupin is the top loser on the BSE since the opening bell. It opened lower at Rs.870 and went down to hit a new high at Rs.806.60 and is currently trading at Rs.808 levels.

The company posted a disappointing set of numbers for Q3FY22 on account of slower growth in US and India and also due to higher price erosion and increased raw material cost.

The company posted a 24% (YoY) rise in consolidated net profit at Rs.545 crore on a net revenue of Rs.4087  crore, up 4%. EBITDA slipped 49% to Rs.404 crore while EBITDA margins tumbled down 1050 bps to 9.9% from 20.4%.

The company said that inflationary environment impacted margins and it remains focused on margin and EBIDTA improvement as its delivers key product launches, cost optimization and improving efficiencies, especially by H2 FY23.

The earnings were also impacted by one-time expenses of Rs.193 crore related to residual Metformin returns from retail and consumers not identified previously, and a provision for aged stock returns of Oseltamivir given lack of an active flu season for the past two years.

It filed 3 ANDAs in the quarter, received 3 ANDA approvals from the U.S. FDA, and launched 2 products in the quarter in the U.S. market. The company now has 167 products in the U.S. generics market.

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