Lupin share price drops 5% post Q4 earnings
Lupin fell 5% to Rs 1,598.3 in Tuesday's trade on BSE despite the pharma firm reported a 52% year-on-year (YoY) growth in its consolidated net profit at Rs 368 crore for the quarter ended March 2024. The same stood at Rs 242 crore in the last year quarter.
Its revenue from operations in the same period jumped 12% YoY to Rs 4,961 crore as against Rs 4430 crore in the corresponding period of last year.
EBITDA for the reporting quarter rose by a robust 67% YoY to Rs 1,026 crore. It was Rs 615 crore a year ago. EBITDA margins, meanwhile, expanded 680 basis points compared with the year-ago period to 21%.
Following the Q4 results, global brokerage firm JPMorgan maintained a 'Neutral' rating on Lupin with a target price of Rs 1550.
«The Q4 was broadly in line with estimates and margins were ahead of expectations. The key positives are margin improvement, continued strength in EMEA, and reduction in net debt,» JPMorgan said.
However, lower growth in the India business is a key negative, it said.
Also Read: Sebi rejects NSE proposal to extend trading hours as brokers protest
Region-wise, North America sales were Rs 1901 crore, up 22% YoY and accounted for 39% of Lupin’s global sales. The US during the quarter was at $209 million, down from $212 million in the preceding quarter, but higher than $175 million in the previous year's quarter.
Meanwhile, India formulation sales were up 8% YoY to Rs 1601 crore, accounting for 33% of Lupin’s global sales. Growth markets sales for the fourth quarter increased 16% YoY to Rs
