- 10 Nov 2022
- ICICIdirect Research
Lupin posts in line Q2FY23 numbers with beat on US front
LUPIN - 2240 Change: 46.45 (2.12 %)News:
Revenues de-grew 1.3% YoY to Rs 4146 crore. India business grew 6.2% YoY to Rs 1584 crore .US de-grew 7% YoY at Rs 1329 crore. South Africa de-grew 7% YoY at Rs 168 crore. RoW grew 31.1% YoY to Rs 543.5 crore. API declined 6.7% YoY to Rs250 crore. Gross margins declined ~150 bps over the previous year to 58.7 %. EBITDA margins declined 330 bps YoY to 10.5%. Adjusted PAT came in at Rs118 crore
View:
Lupin is in the process of calibrating the US business, which is an elongated process as the base business price erosion in the oral solid space along with pending compliance issues continue to weigh on performance especially on the margins front. The company is focusing on complex launches in the US and traction in India branded formulations to overcome margin woes. We remain cautious on the company’s recovery path and continue to monitor the launch selection for the US market
Impact:
Neutral