Lupin records loss of Rs 89 crore in Q1 FY23 as US, India biz revenue declines

4 Aug 2022 , 11:41 AM

Total revenue from operations declined 12.3% YoY to Rs 3,743.8 crore during the quarter. North America sales for Q1 FY2023 were Rs 1,010.4 crore, down 24.2% as compared to Rs 1,333 crore in Q1 FY2022; accounting for 28% of Lupins global sales. India formulation sales for Q1 FY2023 were Rs 1,492 crore, down 8.8% as compared to Rs 16,362 crore in Q1 FY2022; accounting for 41% of Lupins global sales. Growth Markets registered sales of Rs 423.7 crore (up 27.3% YoY) while Europe, Middle-East and Africa (EMEA) sales were Rs 333.5 crore (up 27.6% YoY) in Q1 FY2023. Global API Sales rose by 3.7% to Rs 255.1 crore in Q1 FY23 over Q1 FY22. EBITDA declined by 76% to Rs 237.9 crore in the first quarter from Rs 992.6 crore recorded in the same period last year. EBITDA margin in Q1 FY23 was 6.6% as against 23.4% in Q1 FY22. Profit before tax in Q1 FY23 stood at Rs 2.3 crore, down by 99.7% from Rs 750.3 crore in Q1 FY22. Investment in R&D was Rs 347.78 crore (9.6% of sales) for Q1 FY2023 as compared to Rs 344.2 crore (8.9% of sales) for Q4 FY2022. Lupin received approval for 4 ANDAs from the U.S. FDA in the quarter. Cumulative ANDA filings with the U.S. FDA stand at 459 as of June 30, 2022, with the company having received 301 approvals to date. Nilesh Gupta, managing director, Lupin, said, ?Our numbers are muted this quarter, but we expect a strong bounce back Q2 onwards. Our U.S. sales took a significant dip as we took several strategic decisions to pave the way for building a sustainable and profitable business. During the quarter we pared down inventories and we took shelf stock adjustments on select products. While we continue to see price erosion in our US business and inflation in input materials, our India business continues to do well growing ahead of the market. All other geographies continue to perform well, and we have now implemented several optimization measures including addressing our workforce in operations and supporting functions to improve our cost position and ensure competitiveness. While the benefits of this optimization will start accruing Q2 onwards, we are now focused on getting back on the growth path driven by growth in key markets like India and multiple important complex generic launches in the US and other developed markets. On the compliance front, we have now satisfactorily addressed both Goa and Somerset, and continue our efforts to be best in class in quality and compliance across our network.? Lupin is an innovation-led transnational pharmaceutical company. The company develops and commercializes a wide range of branded and generic formulations, biotechnology products, and APIs in over 100 markets in the U.S., India, South Africa, and across the Asia Pacific (APAC), Latin America (LATAM), Europe, and Middle East regions. The scrip advanced 1.20% to currently trade at Rs 635.35 on the BSE. Powered by Capital Market – Live News