Lupin reports a net loss of Rs86.80 crore in Q1FY23; stock slips ~1%

Pharma major Lupin Limited announced its results for the first quarter ended June 30, 2022. However, the company’s performance deteriorated during the period as the company made several strategic decisions to pave the way for building a sustainable and profitable business.

The company’s Sales dipped by 14.9% on a y-o-y basis at Rs3,604 crore in Q1FY23 as compared to Rs4,237.40 crore in the previous corresponding quarter. Sequentially, Sales declined by 6.7% against Rs3,864.50 crore in the previous quarter.

Company’s EBITDA during the quarter declined by 76% yoy at Rs237.90 crore as compared to Rs992.60 crore in the Q1FY22. On a sequential basis, EBITDA declined by 15.7% against Rs282.30 crore in the previous quarter.

Lupin’s net loss during Q1FY23 was reported at Rs86.80 crore, plunging heavily on a solid base of PAT of Rs548 crore in the previous corresponding quarter. In the previous quarter, the company reported a loss of Rs511.90 crore.

Nilesh Gupta, Managing Director, Lupin Limited, stated, "Our numbers are muted this quarter, but we expect a strong rebound from Q2 onwards.  Our sales in the United States fell significantly as we made several strategic decisions to pave the way for building a profitable and sustainable business.

During the quarter, we reduced inventory and made shelf inventory level adjustments on a few products. While our US business continues to experience price erosion and input material inflation, our India business continues to outperform the market.”