Exactly one year after hitting a year-low, Lupin Limited shares surged 6% to hit a 52-week high of ₹2,029.95 on the NSE today, driven by a 77% year-on-year jump in Q1 net profit at ₹801.31 crore. The pharma major released its Q1 financial results after market hours yesterday, marking a strong start to FY25.
Revenue from operations rose 16.3% from ₹4,814.06 crore in the same quarter of the previous year to ₹5,600.330 crore in the quarter ending on June 30, 2024. North America has overtaken India as the major contributor to the total sales of the company, as sales from the continent rose 28.5% from ₹1,590.5 crore in last year's first quarter to ₹2,040.8 crore during the same period in this fiscal year accounting for 37% of the company’s global sales. With a portfolio of 161 generic products in the US, Lupin remains the 3rd largest pharma player in both the US generics market and the US total market by prescriptions. Meanwhile, sales in India increased by 17.5%, rising from ₹1,638.4 crore to ₹1,925.9 crore over the same period. While sales from Europe, the Middle East and Africa grew by 26.2% year-on-year to ₹503.1 crore in the first quarter, this was still 5.4% lower than reported in the last quarter of the previous fiscal.
“We have had a strong quarter, with performance driven by new products, key geographies, and improvement in our operating margin and profitability,” said Nilesh Gupta, Managing Director of Lupin Limited.
Of the total sales in this quarter, over 6% went to investments in R&D amounting to ₹350 crore, personnel costs were 17.6% at ₹971 crore and manufacturing and other expenses accounted for 29% at ₹1,598.5 crore. Profit before taxes was 18% of these sales and stood at ₹993 crore, driven by better Q1 performance in this fiscal and an impairment charge of ₹201.25 crore in the last quarter of FY 23-24. This impairment charge pertained to intangible assets (including discontinued ANDAs) and certain tangible assets.
The company shares opened at ₹2,020 on the NSE and reached an intraday high of ₹2,029.95. Currently, the shares are priced at ₹2,004.20, up 4.89% from yesterday. Driven by gains in over 45 of its 50 constituent firms, particularly Suzlon, Lupin, and Cummins, NSE index Nifty MIDCAP 50 has risen by 1.96% from yesterday to 15,960.80.
Lupin deals in branded and generic formulations, Active Pharmaceutical Ingredients (APIs), and biosimilars. This Mumbai-headquartered multinational is the largest supplier of first-line anti-TB drugs in the world.