Girish Pai

Nirmal Bang

Equity Bottom-Up

<p>4QFY21 Result Update</p>
<h2>Lupin</h2>
<h3>Cost management aids earnings outperformance</h3>
<p>Lupin’s 4QFY21 revenue at Rs37,831mn is down 6% QoQ and down 2% YoY and lower than our/consensus estimates by 3.1%/4.6%.  The QoQ decline was sharper than anticipated due to sharp decline in API sales and formulation sales in Rest of world. US sales posted good growth (3.7% QoQ), despite supply disruptions in Albuterol inhaler and a weak flu season. Revenue growth should gain momentum in FY22, as growth in India business…</p>

<p>3QFY21 Result Update</p>
<h2>Lupin</h2>
<h3>Lower costs and revenue growth aid sharp margin expansion</h3>
<p>Lupin’s 3QFY21 revenue at Rs 40,174mn grew by 4.8% QoQ and 6.6% YoY. It is lower than our/consensus estimates by 1.6%/1%. The QoQ growth was led by the US business and a sharp increase in other operating income, which stood at Rs1000mn vs Rs530mn in 2QFY21. Other operating income was higher by Rs750mn due to gain from the settlement of litigation recognized during the quarter. EBITDA stood at Rs7,787mn, which…</p>

<p>2QFY21 Result Update</p>
<h2>Lupin</h2>
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<h3>US sales recover, but margins disappoint</h3>
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<p>Lupin’s 2QFY21 revenue at Rs38,350mn is up9% QoQ and down 12% YoY and higher than our/consensus estimates by 1.7%/1%. The QoQ growth was led by the US business and growth markets. EBITDA stood at Rs5,812mn, down 20.5% YoY and up 19% QoQ. EBITDA margin (excluding other income) stood at 15% higher by 132bps QoQ and lower by 161bps YoY. QoQ improvement in EBITDA margin was led by lower staff costs but was offset by…</p>
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<p>1QFY21 Result Update</p>
<h2>Lupin</h2>
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<h3>Seasonality/demand contraction and Metformin affect US sales</h3>
<p>Lupin’s 1QFY21 revenue at Rs35,279mn is down 8.3% QoQ and 20.2% YoY and lower than our/consensus estimates by 6.9%/6%. US sales, which declined by 23% QoQ, led to the underperformance. EBITDA stood at Rs4,881mn, down 43% YoY. EBITDA margin (excl. other income) stood at 14% - higher by 18bps QoQ and lower by 563bps YoY. QoQ improvement in EBITDA margin was led by lower other expenses. This was partially…</p>
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India

Lupin Limited manufactures bulk actives and formulations. The principal bulk actives manufactured by it include Rifampicin, Pyrazinamide, Ethambutol (anti-TB), Cephalosporins (anti-infectives) and cardiovasculars. The company also possesses competencies in phytomedicines, in which medicines are made out of plant and herbal resources supported by the discipline of modern medicine.

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