ECONOMY

Lupin Q4 Review – Worst-Ever Margins: ICICI Securities

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Lupin Ltd.’s Q4 FY22 performance was disappointing with the company reporting its lowest ever Ebitda margin of 6.9% (our estimate: 11.5%) due to steep price erosion in the U.S., product recalls and elevated raw materials and freight costs.

Revenue grew 2.6% YoY to Rs 38.8 billion (our estimate: Rs 39.2 billion).

Adjusting for Rs 1.3 billion impairment charges for Gavis IPs, net loss stood at Rs 680 million (our estimate: Rs 1.7 billion).

U.S. revenue declined 10.4% QoQ to $181 million (our estimate: $206 million). U.S. growth is highly dependent on key launches and plant clearance by the U.S. Food and Drug Administration post re-inspection.

Steep price erosion in the U.S. in near term doesn’t provide room for error.

We believe Lupin’s growth outlook remains uncertain and Ebitda margin would remain subdued going ahead.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.



Most Related Links :
honestcolumnist Governmental News Finance News

Source link

Back to top button