Lupin Ltd's Q4FY18 consolidated adjusted net profit rises 79.45% yoy to Rs685.49cr : Beats Estimates

India Infoline Research Team | May 16, 2018 09:34 IST

The company’s consolidated revenue stood at Rs4,033.83cr, down 5.16% yoy but up 1.46% qoq.

Lupin Ltd Q4FY18

Consolidated Results Q4FY18: (Rs. in cr)

Q4FY18 YoY (%)
Revenue 4,033.83 [5.2]
EBITDA 708.75 [9.3]
EBITDA Margin (%) 17.6 [80]
Net Profit (adjusted) 685.49 79.5
***EBITDA margin change is bps
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Reco. Price

777.5

Last updated on

09-May-2018



Lupin's revenue declined by 5.2% yoy to Rs4033.8cr in Q4FY18. EBITDA margin at 17.6% in Q4FY18 as compared to 18.4% in Q4FY17. Reported loss of Rs783.5cr on account of one-time impairment provision on intangibles of Gavis acquisition, adjusted Q4FY18 PAT is at Rs680.8cr. PAT and revenue numbers are ahead of street expectation. 
  • Lupin’s gross margins have improved by 125bps qoq, however, on yoy basis, gross margins have declined by 592bps.
  • EBITDA margins have increased by 26bps qoq but have declined by 80bps yoy.
  • The 79% yoy increase in the adj PAT was due to the 220% yoy increase in other income as well as due to Rs303.4cr reported in deferred tax.
  • R&D expenditure for Q4FY18 was at Rs401.5cr, 10.1% of sales.
  • Revenue in North America grew by 4.7% qoq but declined by 21.1% yoy. The improvement in qoq numbers indicates slightly better performance in the US market. The yoy decline is due to the increased competition in the Fortamet and Glumetza.
  • Company launched 11 products in the US market during Q4FY18.
  • India revenue, adjusted for the excise duty, grew by 13.5% yoy to Rs964.7cr in Q4FY18.
  • While growth was reported in Asia-Pacific (8.5% yoy), Europe, Middle-East and Africa (16.7% yoy) and Latin America (29.7% yoy) markets, revenue in the ROW market declined by 10.9% yoy. 
  • Overall formulations revenue declined by 4.7% yoy. API business, adjusted for excise duty, grew by 2.8%.
  • Cumulative ANDA filings with USFDA stand at 398 at the end of March 2018 wherein the company has received 235 approvals.
  • Company said that it remains on track to resolve the warning letter on its Goa and Indore unit-2 manufacturing facilities.
  • Company has said that successful commercialization of Solosec in the US remains a near-term trigger.
Analyst meet highlights
  • Expects to launch Solosec in June-18 and has said that it is a promising opportunity in women’s healthcare.
  • Company has said that the worst of price erosion is likely to be over, however expects single digit price decline to continue.
  • Company has said its 10% portfolio is in specialty and complex generics and expects to focus on inorganic opportunities like Bipresso (Japan) and Namuslca (Europe) and complex products and biosimilars (US).
  • R&D spending expected to be ~Rs2,000cr in FY19E.
  • Margin expected in 19‐21% range.
  • Company expects remediation of Indore and Goa plants to be completed by end of May‐18.
  • Overall, management has said that FY19E wil be a challenging year in the US and expects FY20E to see growth revival.
Technical View:
Lupin Ltd is currently trading at Rs. 755, up by 0.65 points or 0.09% from its previous closing of Rs. 754.35 on the BSE. The scrip opened at Rs. 752.50 and has touched a high and low of Rs. 772.20 and Rs. 723.55 respectively. So far 54,69,881 (NSE+BSE) shares were traded on the counter. The stock is currently trading above its 200 DMA.

BSE 747.00 4.90 (0.66%)
NSE 745.60 3.25 (0.44%)

***Note: This is a NSE Chart

 

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