At Lupin, we recognize the criticality of managing financial resources efficiently to drive business growth as well as bring about a positive societal impact. We continue to make substantial investments in Research and Development and manufacturing, which are essential to unlock our potential and enable optimum productivity in the value chain. Our distinct approach lies in strategically allocating capital to enable focus on core pharma growth across key geographies while nurturing adjacencies within threshold units to provide for a patient-centric approach to growth. This strategy has enabled us to establish a strong presence across various market segments, thereby mitigating the risks associated with a singular business focus.
During FY24, Lupin achieved a remarkable resurgence, marked by significant growth in both operating margin and profitability. With revenue growth exceeding over 20%, the company’s profits soared more than fourfold compared to FY23, demonstrating robust financial health and resilience amid challenging market conditions. This exceptional performance is a testament to Lupin’s strategic foresight as well as operational agility, augmenting our position in the pharmaceutical market.
Our U.S. business showcased outstanding growth, surpassing the USD 800 million revenue mark, driven by New Product Launches such as Tiotropium and Darunavir, combined with stellar performances in the inline generic business. This success highlights our ability to identify and capitalize on market opportunities, reaffirming our commitment to delivering high-quality healthcare solutions.
Our India business maintained a strong momentum, outpacing market growth despite formidable challenges. In the EMEA region, robust sales in the UK and EUPP segments contributed to substantial growth throughout the year. This geographic diversification strategy has proven to be a key driver of Lupin’s sustained success, enabling us to weather market fluctuations and capitalize on emerging opportunities.
Our ability to navigate complex market dynamics and deliver customer value underscores the strong proposition we offer. With focus on innovation, operational excellence, and strategic expansion, Lupin is well-poised to continue driving sustainable growth and creating value for its stakeholders in the future years.| Key Metrics | FY24 | FY23 |
|---|---|---|
| Revenue Generated (₹ Mn) | 200,108 | 166,417 |
| EBITDA (₹ Mn) | 39,307 | 18,715 |
| PBT (₹ Mn) | 24,223 | 7165 |
| ROCE | 14.8% | 5.2% |
| Working Capital Days | 124 | 145 |
Lupin has demonstrated robust financial performance in FY24, with total revenue surpassing INR 200 Bn. Our EBITDA percentage grew sequentially every quarter - from 14.4% in the first quarter to 20.6% in the fourth quarter, ending with an annual average of 18.5%, showcasing steady improvement throughout the year. This growth was driven by strategic launches of key products such as Tiotropium and Darunavir, coupled with strong sales of core products such as Luforbec, Albuterol, and Xoponex. Additionally, cost optimization initiatives and favorable market conditions contributed to enhanced profitability. The dividend payments to shareholders amounted to INR 1.8 Bn. Furthermore, strategic acquisitions, including Medisol and ONDERO, contributed to our expansion efforts and strengthened our competitive position in key therapeutic areas.
Lupin’s strategic pivot towards specialized generics and respiratory treatments has delivered remarkable outcomes, particularly evident in the United States, where inhalation products now constitute a significant 40% share of total revenue. This trend is equally promising in the EMEA region, buoyed by the resounding success of Luforbec, our flagship inhalation product. Lupin has also witnessed a surge in demand for respiratory products in India, surpassing market growth rates and resulting in significant increase in overall sales.
| Key Metrics | INR (Mn) |
|---|---|
| Capex | 9,248 |
| Acquisitions | 5,180 |
| Dividend payout | 1,820 |
Lupin’s dedication to environmental, social, and governance principles continues to be at the forefront of our strategic investments, driving long-term value creation for all stakeholders. Our capital expenditure strategy integrates ESG considerations, extending beyond mere financial returns.
| Key Metrics | INR (Mn) |
|---|---|
| Capital invested in environmental benefits | 776 |
| Amount invested in employee benefit | 34,946 |
| Amount invested in CSR | 256 |
We maintain an unwavering commitment to ethical, transparent, and sustainable tax practices, which align with our core values and Code of Business Conduct. Our tax strategy ensures compliance with all relevant laws and deadlines while responsibly managing our tax liabilities. Our CFO leads this portfolio, supported by our global corporate tax department and trusted legal advisors. We prioritize adherence to transfer pricing standard and OECD guidelines, maintaining transparent reporting to tax authorities. Upholding accountability to both internal and external stakeholders, we strive for alignment, compliance, and effective reporting. Our firm conformity towards transparency extends beyond legal mandates, fostering trust and confidence in our tax operations. For detailed insights, our group wide tax strategy for Lupin Healthcare can be accessed at https://www.lupin.com/wp-content/uploads/2023/05/global-tax-policy-2.pdf/.
Assurance Statement