Lupin shares hit 52-week high on strong Q2 results

Shares of pharmaceutical major Lupin surged as much as 2.18% to hit a 52-week high of ₹1,238.15 apiece on the BSE on Thursday, a day after the company reported a consolidated net profit of ₹489.7 crore in the July to September quarter of FY24, witnessing a growth of 277.6% year-on-year as against ₹129.7 crore in the same period last year.

The scrip opened higher at ₹1,222.05 on Thursday, up 0.85%, as against the previous closing price of ₹1,211.70. At 1:10 pm, the share price of the company was trading 0.27% higher at ₹1,215. In contrast to this, the broader BSE Sensex was trading 0.08% or 50.21% lower at 64,925.40. During the trading session on Thursday, the company's market capitalisation stood at ₹55,182 crore with more than 1.92 lakh shares exchanging hands on the BSE as against the two-week average of 0.77 lakh shares. The company hit a 52-week low of ₹628.10 on March 31 this year. In the past one month, three months and one year, the counter has given 5.50%, 10.31% and 74.70% in returns, respectively.

The company's revenue from operations in the Q2 of FY24, stood at ₹5,038.6 crore, up 21.5% YoY as against ₹4,145.5 crore in the same period last year. The company's EBITDA (earnings before interest, tax, depreciation and amortization) surged by 104.7% to ₹958.2 crore, as against ₹468 crore in the same period last year.

During the quarter under review, the company's sales surged 20.7% YoY to ₹4,939.2 crore as against ₹4,019.2 crore in the same period last year. Of this, the sales in North America accounted for 38% of the total sales and stood at ₹1,866.6 crore, up 40.4% as against ₹1,329.5 crore in the same period last year. In Q2 of FY24, sales in North America stood at $213 million as against $181 million in Q1 of FY24 and $159 million in Q2 of FY23.

Meanwhile, the domestic market accounted for 34% of the pharmaceutical major’s total sales. The sales in the domestic market stood at ₹1,691.5 crore, up 6.8% as against ₹1,584.1 crore in the same period last year. The sales in the domestic market grew by 2.6% during the quarter under review as against 6.9% in the Q2 of FY23.

As of September 30, 2023, the company has a working capital of ₹5,675.5 crore and a net debt of ₹1,805.6 crore.

"We delivered growth across all our target geographies, while managing costs and achieving operating leverage, thereby driving strong topline and bottomline growth. The U.S. launch of Tiotropium DPI was the highlight of the quarter, making inhalation a substantial portion of our U.S. sales. Our India business continues to do well, with growth in our target therapies ahead of market. We are also making progress on our goal of becoming best in class in quality and compliance with both our Nagpur-1 and Mandideep-2 facilities received satisfactory inspection closures," says Nilesh Gupta, MD, Lupin.