Lupin reports 12% rise in Q4 sales riding on API, US and India

Mumbai-based pharmaceutical major Lupine posted a 12 per cent year-on-year rise in sales for the fourth quarter of FY2022-2023, profit after tax of Rs.242.4 crore as against a loss of Rs.511.9 crore in the corresponding quarter of the previous fiscal.

Revenue growth came from strong API business performance along with U.S. and domestic market sales growth.

In Q4 FY22, Lupine posted a loss due to higher costs and price erosion in the US and impairment expense of Rs.126.7 crore for Gavis in the US.

The results beat Street estimates as analysts mostly expected the company to post a 7-8 percent increase in revenue on the US (bowel drug) business and a sequential improvement in the domestic market.

However, for the full budget, sales growth is anemic by 0.5% to Rs.16,270 crore. PAT for the full year came in at Rs.447.7 crore versus a loss of Rs.1,509 crore in FY22. The 2021-22 figures were impacted by Glumetza (diabetes drug) litigation and settlement expenses in the second quarter, and impairment expense of Rs.707.7 crore for Solosec.

Commenting on the results, Nilesh Gupta, Managing Director of Lupine Limited, said: “We have been able to drive continued improvement in operating margins due to improved growth in India, improved margins in the US as well as growth in other areas such as our API business, and Europe region Middle East, Africa, and Asia Pacific.”

He added that Lupin’s business in India registered a growth of 15 percent according to IQVIA, excluding diabetes.

“In the US, we improved our margins for the third consecutive quarter by maximizing our portfolio, optimizing expenses and increasing investment focus in research and development of complex products,” added Gupta.

“We are committed to maintaining this positive momentum in the new year and driving strong growth across our regions, particularly India and the US with the help of our recent sales force expansion and physical new product launches respectively.”

In 2022-23 North America contributed 33 percent of Lubin’s consolidated revenue, while India contributed 37 percent.

During the fourth quarter, the company’s installations business grew 10%, while its API business reported strong growth of 46.5%.

India region fixture sales decreased 3.1 percent in the quarter compared to the third quarter of fiscal 2023; The company said that it increased by 8.9 percent compared to the fourth quarter of fiscal year 2022.

Global API sales for FY2023 were Rs.1,109.2 crore, up by 12% compared to Rs.9,90.4 crore in FY2022; It accounts for 7 percent of Lupine’s global sales. Sales for Q4FY2023 were Rs. 322.6 crore, up by 14.6 per cent compared to Rs.281.5 crore in Q3FY23; an increase of 46.5% compared to the fourth quarter of fiscal year 2022.

Investment in R&D for the quarter was Rs. 305 crore (7 per cent of sales).