Lupin Ltd's Q3FY19 consolidated net profit declines 14.1% yoy to Rs190.47cr : Misses Estimates

The company’s consolidated revenue stood at Rs4,504.87cr, up 13.31% yoy and 15.78% qoq.

Feb 06, 2019 04:02 IST India Infoline Research Team

Lupin Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 4,504.87 13.3
EBITDA 752.54 9.3
EBITDA Margin (%) 16.7 [60]
Net Profit (adjusted) 190.47 [14.1]
***EBITDA margin change is bps
Lupin’s revenue in Q3FY19 grew by 13.3% yoy Rs4,505cr vs. 3,976cr in Q3FY18. EBITDA grew by 9.3% yoy to Rs752.5cr in Q3FY19 vs. Rs688cr in Q3FY18. EBITDA margins stood 16.7% in Q3FY19 vs. 13.9% in Q2FY19 and 17.3% in Q3FY18. Company reported loss of Rs151.8cr in Q3FY19 due to the one off litigation fine of EUR40mn (Rs320cr) for Perindopril . Company has done a Perindopril fine provision of EUR 42.8mn (Rs342.2cr) in Q3FY19 which pulled the profit for the quarter. Adjusted for the litigation fine, PAT is Rs190cr in Q3FY19 vs. PAT of Rs222cr in Q3FY18. We had expected revenue/EBITDA/PAT of Rs4,108cr/Rs570cr/Rs298cr for Q3FY19. Lupin’s revenue and EBITDA is above our estimates but PAT is below our estimates. The beat in the revenue/EBITDA is due to the licensing income of Rs210.3cr in Q3FY19. Adjusted for this, Lupin beat our revenue estimates but EBITDA is below our estimates.

Other Highlights
  • Lupin’s North America sales for Q3FY19 was flat at Rs1,417cr vs. Rs1,432cr during Q3FY18.
  • Lupin’s North America sales in USD terms declined 8.9% yoy to $194mn compared to $213mn during Q3FY18.
  • India sales for Q3FY19 grew by 11.4% yoy to Rs1,190cr vs. Rs1,069cr in Q3FY18.
  • APAC sales grew 2.9% yoy to Rs694cr in Q3FY19. EMEA sales grew 2.9% yoy to Rs280cr in Q3FY19.
  • Sales in Latin America grew by 5.1% yoy to Rs156cr, while ROW sales grew by 84% yoy to Rs68cr in Q3FY19.
  • API sales during Q3FY19 grew by 35% yoy to Rs362cr.
  • R&D cost during Q3FY19 stood at Rs425.7cr, 10.2% of sales.
  • Company has said that it is on track with important launches like Levothyroxine and Ranolazine in Q4FY19E and has monetized its novel drug in Q3FY19.
  • Company has also said that it is on track to deliver on cost optimization efforts and expect meaningful benefit in FY20E.

Technical View:

Lupin Ltd is currently trading at Rs. 841.95, up by 4.7 points or 0.56% from its previous closing of Rs. 837.25 on the BSE.
The scrip opened at Rs. 841.70 and has touched a high and low of Rs. 850.50 and Rs. 805.40 respectively. So far 67,80,750 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 100 DMA.

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