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Shares of Lupin Ltd dipped 7 per cent to Rs 1,035.65, hitting an over three month low on the BSE in intra-day trade on Wednesday after the pharmaceutical company reported a disappointing performance for the April-June quarter (Q1FY22) on the margins front. The company’s revenues, meanwhile, were driven by US$50 million licensing income and solid domestic growth. The stock was trading at its lowest level since April 19, 2021. In the afternoon, tradeLupin was trading 6 per cent lower at Rs 1,051, as compared to a 0.14 per cent decline in the S&P BSE Sensex. The trading volumes on the counter are more-than-doubled, with a combined 5.78 million equity shares having changed hands on the NSE and BSE so far.
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For Q1FY22, Lupin reported an 18.1 per cent quarter-on-quarter (QoQ) growth in profit after tax (PAT) at Rs 548 crore as against Rs 464 crore Q4FY21. The sales grew 12.7 per cent to Rs 4,237 crore on the solid growth of 27.2 QoQ by India business. The company’s North America sales were down 10.8 per cent sequentially at Rs 1,330 crore. Lupin said it received $50 million from Boehringer Ingelheim for achieving critical milestones for its novel MEK inhibitor compound collaboration.
Ex-licensing income, Ebitda (earnings before interest, taxes, depreciation, and amortization) margins remained subpar at 14 per cent YoY. The decline in gross margins is primarily offset by lower employee cost, ICICI Securities said in a note.
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