- Pharmaceutical giant Lupin Ltd’s share price declined by over 4% in morning trades on Tuesday, following the company’s Q4 earnings performance report released on Monday.
- The company’s net profit for the quarter ending March was ₹359.4 Crore, a 41.4% sequential decline from ₹613 crore in the December 2023 quarter.
- Despite the sequential decline, the year-on-year net profit saw a 52.3% increase from ₹236 crore in the same quarter of the previous year.
Lupin Ltd’s Q4 earnings performance triggers a decline in share price, despite a year-on-year increase in net profit. The company’s future outlook remains positive due to new launch momentum in the US.
Lupin’s Q4 Earnings Performance
Lupin Ltd’s net profit for the quarter ending March 2024 was ₹359.4 Crore, marking a 41.4% sequential decline from ₹613 crore in the December 2023 quarter. However, the year-on-year net profit saw a 52.3% increase from ₹236 crore in the same quarter of the previous year. The North American sales at ₹1900.6 Crore, contributing two-thirds to overall revenues, grew by 22.3%, although the sequential growth was just 0.6%.
Domestic Sales and Impairment Impact
The Q4 domestic sales for Lupin at ₹1601.5 crore also declined 7.2% compared to ₹1725.1 Crore in Q3 FY2024, though they were up 8.3% year-on-year compared to ₹1478.6 crore in Q4 FY2023. This accounted for the third of Lupin’s global sales. The impact on the net profit on a sequential basis was more due to an impairment of ₹149 crore taken by Lupin related to intangible assets.
Annual Performance and Future Outlook
The overall performance by Lupin for the financial year saw a significant improvement. For the twelve months ended March 2024, Lupin’s net profit at ₹1935.6 crore grew 332% over ₹447.7 Crore in FY23. This turnaround in earnings, mainly led by Lupin’s growth in the US, has propelled Lupin’s share price, which has risen more than 120% in a year. The company filed 1 ANDA in the quarter, received 12 ANDA approvals from the U.S. FDA, and launched 6 products in the quarter in the U.S., now having 161 generic products in the U.S.
Conclusion
Despite the decline in Lupin’s share price following the Q4 earnings report, the company’s year-on-year net profit increase and strong performance in the US market indicate a positive future outlook. The company’s strategic product launches and ANDA approvals in the US are expected to continue driving its growth.
