Lupin Ltd’s Shares Surge on Robust Profit and US Sales Performance

Lupin Ltd's Shares Surge on Robust Profit and US Sales Performance

VoM News Desk | November 9, 2023 | 12:24 PM IST | Breaking News | Follow on Google News

Lupin Ltd’s Shares Surge on Robust Profit and US Sales Performance

Lupin Ltd’s Shares Surge on Robust Profit and US Sales Performance

In Thursday’s trading session, Lupin Ltd’s shares saw an impressive climb of up to 1.7% on the National Stock Exchange (NSE), buoyed by a substantial 277% profit surge for the September-ending quarter. The pharmaceutical giant’s remarkable growth has been attributed largely to its flourishing sales in the lucrative US market.

US Market Success Fuels Profit Leap

The company’s stellar performance in the United States comes on the heels of strategic product launches in areas with limited competition. Notably, Lupin released generics for Spiriva, a respiratory treatment, Prezista, an antiretroviral medication, and Suprep, a bowel preparation kit, all of which likely contributed to the uptick in US revenues. The North American market, which now represents 38% of Lupin’s global sales, reported a significant year-on-year sales increase of 40.4%, generating ₹1,866.6 crore in Q2FY24, a noteworthy rise from ₹1,329.5 crore in Q2FY23.

Domestic Growth Below Expectations, But Overall Performance Strong

Despite the jubilation over the US market performance, Lupin’s domestic sales painted a less rosy picture, growing by 6.8% year-on-year, which fell short of analysts’ higher expectations. The domestic market, accounting for 34% of the global sales, showed a modest sequential increase of 3.2%. However, the domestic market’s subdued growth was overshadowed by the robust North American figures and a net profit that exceeded analyst forecasts.

Earnings Triumph Over Analyst Projections

Lupin’s net profit for the quarter stood at a remarkable ₹490 crore, a leap of 277% from ₹130 crore in the previous year’s corresponding period, surpassing the estimates set by industry experts from PhilipCapital, MOFSL, and Kotak Institutional Equities. Sequentially, the profit grew by 8% from ₹452 crore in the June-ending quarter. This financial vigor is also reflected in the company’s total revenue from operations, which marked a 21% increase to ₹5,039 crore in Q2FY24, and in its EBITDA, which doubled year-on-year to ₹958.2 crore and grew 8% from the previous quarter.

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