InvestorQ : Why did Lupin shares fall so hard on August 07? Was it because of the results for the quarter?
Katherine Gonsalves made post

Why did Lupin shares fall so hard on August 07? Was it because of the results for the quarter?

Answer
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Rutuja Nigam answered.
1 month ago


Lupin reported 60% lower net profit at Rs.106.9 crore. In fact on a sequential basis, the fall was almost 72% as Mar-20 had been a robust quarter for the company. EBITDA was down 34.7% at Rs.531 crore in the Jun-20 quarter even as the EBITDA margins fell sharply from 20% to just 14.7% in the Jun-20 quarter due to cost pressures and weak sales.

The impact of the COVID-19 pandemic was evident in the performance of the company as the lockdown had impacted Lupin’s key manufacturing facilities, labour force and their ability to source key inputs on time due to the supply chain disruption caused by the pandemic in China. The company is confident of gradual improvement in margins in the next few quarters.

The revenue was much lower as total revenues were down just 9% at Rs.3530 crore. This was driven down by a 21% fall in US sales. However, the domestic formulations business was just down by 1.7%. For Lupin, the domestic business constitutes nearly 37% of its total sales and hence is significant. Global sales overall were down 8% in Jun-20 quarter.

Lupin global API sales for stood at Rs.409 crore for the Jun-20 quarter up 17% from Rs.328.6 crore in the Jun-19 quarter. Lupin currently has about 175 products in the US generics market and has filed another 4 ANDAs. Currently, Lupin is the market leader in 62 products in the US generics market while it is among the top-3 in 126 products.