Lupin share price gains up to 1.7% as strong US Sales help net profit growth of 277%, to ₹490 Crore beating estimates

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Lupin Ltd share price gained up to 1.7% on the NSE, in the opening trades on Thursday as company reported strong profit growth of 277% for the quarter ending September being driven by the strong sales growth recorded in the US markets. The Launch of limited competition opportunities like- generic Spiriva (respiratory treatment drug), generic of Prezista (antiretroviral drug) and generic Suprep (Bowel kit) under exclusivity are likely to helped driven growth in the company’s US sales.

North America sales for Q2FY24 at ₹1866.6 Crore were up 17.4% sequentially and 40.4% year-on-year as compared to ₹1329.5 crore in Q2FY23, and accounted for 38% of Lupin’s global sales. Also Read- 3 common investment mistakes to avoid during bull markets There was however some disappointment with growth in domestic market sales that accounted for 34% of Lupin’s global sales India sales for Q2 FY2024 at ₹1691.5 crore though grew 3.2% sequentially and were up 6.8% as compared to IRs 1584.1 Crore in Q2 FY2023.

However, analysts had been anticipating higher growth. While analysts at Motilal Oswal Financial Services Ltd (MOFSL) had expected the domestic formulation segment to grow 9% YoY for the quarter while those at Kotak Institutional equities expected domestic sales to grow 12% yoy for Lupin.

The weaker than expected domestic sales growth however was compensated by strong North American Market growth and Lupin reporting a very strong performance with net profit beating analysts' estimates. Lupin reported net profit of ₹490 crore in the second quarter of fiscal year 2023-24 (Q2FY24), which was 277 percent higher as compared to ₹130 crore clocked in the year-ago period.