Lupin Ltd Q3 net up 24.5% yoy at Rs546cr on the back of deferred tax credits of Rs524cr

4 Feb 2022 , 06:00 PM

Lupin Ltd reported 3.57% yoy growth in total sales revenues for the Dec-21 quarter on consolidated basis at Rs4,161cr. On a sequential basis, the revenues were up by 1.70%. During the December 2021 quarter, North America sales grew 9.4% yoy while India sales grew 7.8% yoy.

The overall growth in EMEA was much smaller. The total formulations business saw 7.2% growth in sales yoy while the API business saw sales falling -25.4% on yoy basis.

On a sequential basis, only the US showed strong sales growth of 10.4% while all other markets including India showed negative sales growth. In fact, India sales fell by -4.5% on sequential basis. The company spent Rs.355cr on R&D or nearly 8.7% of sales.

For the Dec-21 quarter, the operating profits were down on a yoy basis by -68.86% at Rs166cr. During the quarter, the EBITDA was down -49.5% on yoy basis on the back of sharply higher operating costs.

For instance, material costs were up 23.2% yoy while the manufacturing and other costs were up 20% on yoy basis. This was despite the inventory efficiency gains and cost optimization undertaken by the company during the quarter.

Operating margins tapered from 13.3% in the Dec-20 quarter to 4% in the Dec-21 quarter. The EBITDA margins are not comparable on a sequential basis.

Net Profit after tax (PAT) for the Dec-21 quarter was up 24.48% yoy at Rs546cr on the back of a deferred tax credit of Rs524, in the absence of which the profits would have been very small in the quarter.

PAT margins improved from 10.91% in the Dec-20 quarter to 13.11% in the Dec-21 quarter. The PAT margins are not comparable on a sequential basis due to the huge write off taken in the Sep-21 quarter.

Financial highlights for Dec-21 compared yoy and sequentially

	Lupin Ltd
Rs in Crore	Dec-21	Dec-20	YOY	Sep-21	QOQ
Total Income (Rs cr)	₹ 4,161	₹ 4,017	3.57%	₹ 4,091	1.70%
EBITDA (Rs cr)	₹ 166	₹ 534	-68.86%	₹ -2,243	-107.42%
Net Profit (Rs cr)	₹ 546	₹ 438	24.48%	₹ -2,098	-126.00%
Diluted EPS (Rs)	₹ 11.98	₹ 9.63		₹ -46.22
EBITDA Margin	4.00%	13.30%		-54.83%
Net Margins	13.11%	10.91%		-51.28%