Lupin Limited, one of the largest Indian pharmaceuticals, will declare its financial results for the second quarter of fiscal year 2024-25 (Q2FY25) on Thursday, November 7. Evaluators foretasted an excellent yearly performance owing to increased sales in key markets, while growth in comparison with previous quarter may be less encouraging.
Lupin’s research firms give high estimates of net profit growth on bpw basis, for example net profit is estimated to be in the region of Rs 693 crore for Q2FY25 up by 41.7% from net profit compared to Rs 489 Crores for Q2FY24. However, net profit (NP) in quarter two shows a decline from Rs 801 crores by an anticipated measure of 13.4 percent.
In addition, revenue is expected to increase by 9.2% year on year (yoy) and is likely to be around Rs 5,502 crore as compared to Rs 5,038 crore of the same quarter of the previous fiscal year. Revenues may also decrease slightly by about 1.7% QOQ from Rs 5,600 crore in Q1FY25.
The development is expected to be driven by several essential product categories and market segments. The market in the United States (US), which remains one of the pivotal markets in Lupin’s global sales strategy, is expected to report revenues of around $229 million for Q2FY25, which is a 1% growth over the previous quarter. The major growth factors include sales of generic Spiriva (gSpiriva) estimated at $37 million, in addition to sales of new gMyrbetriq 50 mg which would partially compensate for the drop in gMyrbetriq 25 mg sales. In the domestic arena, the business is also expected to perform decently, with 11% growth forecasted year on other year. The EMEA regions and other countries are also expected to register an impressive growth rate of 5% and 4% respectively.
Overall profitability metrics suggest a slight decrease in gross margin levels which is calculated at 68.6 % which is also lower by 20 basis points compared to the prior year. While the company’s research activities remain elevated at nearly 7.5% of sales, which is recurrent, EBITDA is projected to increase by 25 percent year on year to reach Rs 1,150 crore even if a decline of 7 percentages on quarterly basis is projected. The EBITDA margins are projected to decline slightly because of R&D expenses and pricing effects.
Performance looks well balanced with an upward trend in revenue both in US and local markets but tempered with effects of price erosion and cut-throat competition in some therapeutic areas. In spite of this reiteration in growth possibilities, Lupin continues to concentrate on further building revenues and profitability up, thanks to growing sales of gMyrbetriq and gSpiriva, which are again niche launches.
