Mumbai: Pharma major Lupin Limited [BSE: 500257 | NSE: LUPIN] reported its financial performance for the quarter and fiscal year ending March 31, 2020. These audited results were taken on record by the Board of Directors at a meeting held today. The Board recommended a dividend of 300%.
Financial Highlights (from Continuing Operations) – Consolidated IND-AS
Amt in INR mn
| Particulars | Quarter | Full Year | ||||||
| Q4 FY20 | Q3 FY20 | QoQ Growth % | Q4 FY19 | YoY Growth % | FY20 | FY19 | YoY Growth % | |
| Sales | 37,910 | 37,161 | ↑ 2.0% | 38,070 | ↓ 0.4% | 151,428 | 143,181 | ↑ 5.8% |
| EBITDA | 7,339 | 5,227 | ↑ 40.4% | 8,525 | ↓ 13.9% | 28,386 | 28,937 | ↓ 1.9% |
| EBITDA Margin (%) | 19.4% | 14.1% | ↑ 530 bps | 22.4% | ↓ 300 bps | 18.7% | 20.2% | ↓ 150 bps |
| PBT before Exceptional items | 4,123 | 1,809 | ↑ 127.9% | 5,492 | ↓ 24.9% | 15,054 | 17,452 | ↓ 13.7% |
| PBT after Exceptional Items | 4,954 | (1,078) | NA | 5,514 | ↓ 10.2% | 7,533 | 14,052 | ↓ 46.4% |
Income Statement highlights – Q4 FY2020
Balance Sheet highlights
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “We closed the year with strong growth across all our key markets, and significant strengthening of our profitability and balance sheet. We have had strong momentum in our two major markets, the US and India, and on compliance across our facilities. Importantly, in the current times, we have been able to ensure business continuity while safeguarding the health and safety of our employees.”
Consolidated Financial Results – Q4 FY2020
Amt in INR mn
| Particulars | Q4 FY20 | % of sales | Q3 FY20 | % of sales | QoQ Growth % | Q4 FY19 | % of sales | YoY Growth % |
| Sales | 37,910 | 100.0% | 37,161 | 100.0% | 2.0% | 38,070 | 100.0% | -0.4% |
| Other operating income | 547 | 1.4% | 532 | 1.4% | 2.8% | 796 | 2.1% | -31.2% |
| Total Revenue from operations | 38,457 | 101.4% | 37,693 | 101.4% | 2.0% | 38,866 | 102.1% | -1.1% |
| Material cost | 14,050 | 37.1% | 13,593 | 36.6% | 3.4% | 11,824 | 31.1% | 18.8% |
| Gross Profit (Excl. Other op. income) | 23,860 | 62.9% | 23,568 | 63.4% | 1.2% | 26,246 | 68.9% | -9.1% |
| Employee cost | 7,635 | 20.1% | 7,407 | 19.9% | 3.1% | 7,082 | 18.6% | 7.8% |
| Manufacturing & Other expenses | 11,519 | 30.4% | 12,402 | 33.4% | -7.1% | 12,168 | 32.0% | -5.3% |
| Other Income | 2,086 | 5.5% | 936 | 2.5% | 122.9% | 733 | 1.9% | 184.7% |
| EBITDA | 7,339 | 19.4% | 5,227 | 14.1% | 40.4% | 8,525 | 22.4% | -13.9% |
| Depreciation & Amortization | 2,142 | 5.7% | 2,532 | 6.8% | -15.4% | 2,190 | 5.8% | -2.2% |
| EBIT | 5,197 | 13.7% | 2,695 | 7.3% | 92.8% | 6,335 | 16.6% | -18.0% |
| Finance cost | 1,074 | 2.8% | 886 | 2.4% | 21.2% | 843 | 2.2% | 27.4% |
| PBT before Exceptional items | 4,123 | 10.9% | 1,809 | 4.9% | 127.9% | 5,492 | 14.4% | -24.9% |
| Exceptional items1 | (831) | -2.2% | 2,887 | 7.8% | NA | (22) | -0.1% | NA |
| PBT after Exceptional items | 4,954 | 13.1% | (1,078) | -2.9% | NA | 5,514 | 14.5% | -10.2% |
| Tax2 | 1,051 | 2.8% | 7,670 | 20.6% | -86.3% | 2,943 | 7.7% | -64.3% |
| Profit after Tax | 3,903 | 10.3% | (8,748) | -23.5% | NA | 2,572 | 6.8% | 51.8% |
| (+) Share of Profit from JV | 10 | 0.0% | 10 | 0.0% | 0.0% | 15 | 0.0% | -33.1% |
| (-) Non-Controlling Interest | 17 | 0.0% | (53) | -0.1% | NA | 68 | 0.2% | -75.5% |
| Net Profit from continuing operations | 3,896 | 10.3% | (8,685) | -23.4% | NA | 2,518 | 6.6% | 54.7% |
| Profit/(Loss) from discontinued operations | 0 | 0.0% | 335 | 0.9% | NA | 378 | 1.0% | NA |
| Profit/(Loss) for the period | 3,896 | 10.3% | (8,350) | -22.5% | NA | 2,896 | 7.6% | 34.5% |
Note –
Tax includes the impact of Exceptional items as below:
Consolidated Financial Results – FY2020
Amt in INR mn
| Particulars | FY2020 | % of sales | FY2019 | % of sales | YoY Growth % |
| Sales | 151,428 | 100.0% | 143,181 | 100.0% | 5.8% |
| Other operating income | 2,320 | 1.5% | 3,465 | 2.4% | -33.0% |
| Total Revenue from operations | 153,748 | 101.5% | 146,646 | 102.4% | 4.8% |
| Material cost | 54,306 | 35.9% | 49,461 | 34.5% | 9.8% |
| Gross Profit (Excl. Other op. income) | 97,122 | 64.1% | 93,720 | 65.5% | 3.6% |
| Employee cost | 29,868 | 19.7% | 27,702 | 19.3% | 7.8% |
| Manufacturing & Other expenses | 46,025 | 30.4% | 43,876 | 30.6% | 4.9% |
| Other Income | 4,837 | 3.2% | 3,330 | 2.3% | 45.3% |
| EBITDA | 28,386 | 18.7% | 28,937 | 20.2% | -1.9% |
| Depreciation & Amortization | 9,703 | 6.4% | 8,460 | 5.9% | 14.7% |
| EBIT | 18,683 | 12.3% | 20,477 | 14.3% | -8.8% |
| Finance cost | 3,629 | 2.4% | 3,025 | 2.1% | 20.0% |
| PBT before Exceptional items | 15,054 | 9.9% | 17,452 | 12.2% | -13.7% |
| Exceptional items1 | 7,521 | 5.0% | 3,400 | 2.4% | 121.2% |
| PBT after Exceptional items | 7,533 | 5.0% | 14,052 | 9.8% | -46.4% |
| Tax2 | 11,571 | 7.6% | 8,879 | 6.2% | 30.3% |
| Profit after Tax | (4,038) | -2.7% | 5,173 | 3.6% | NA |
| (+) Share of Profit from JV | 39 | 0.0% | 38 | 0.0% | NA |
| (-) Non-Controlling Interest | (4) | 0.0% | 89 | 0.1% | NA |
| Net Profit from continuing operations | (3,995) | -2.6% | 5,121 | 3.6% | -178.0% |
| Profit/(Loss) from discontinued operations | 1,301 | 0.9% | 945 | 0.7% | 37.7% |
| Profit/(Loss) for the period | (2,694) | -1.8% | 6,066 | 4.2% | -144.4% |
Note –
Exceptional Items include:
Sales Mix
Q4 FY2020 Sales
| Particulars | Q4 FY20 | Q3 FY20 | Growth QoQ | Q4 FY19 | Growth YoY |
| North America | 15,791 | 13,766 | 14.7% | 17,406 | -9.3% |
| India | 11,921 | 12,969 | -8.1% | 10,525 | 13.3% |
| EMEA | 3,650 | 2,913 | 25.3% | 3,397 | 7.4% |
| LATAM | 1,353 | 1,796 | -24.7% | 1,385 | -2.3% |
| APAC | 1,447 | 1,722 | -16.0% | 1,712 | -15.5% |
| ROW | 463 | 822 | -43.7% | 733 | -36.8% |
| Total Formulations | 34,624 | 33,988 | 1.9% | 35,158 | -1.5% |
| API | 3,286 | 3,173 | 3.6% | 2,912 | 12.8% |
| Consolidated Sales | 37,910 | 37,161 | 2.0% | 38,070 | -0.4% |
FY2020 Sales
| Particulars | FY20 | FY19 | Growth YoY |
| North America | 58,212 | 55,924 | 4.1% |
| India | 51,385 | 46,382 | 10.8% |
| EMEA | 12,364 | 11,906 | 3.8% |
| LATAM | 6,143 | 5,658 | 8.6% |
| APAC | 6,069 | 5,600 | 8.4% |
| ROW | 2,815 | 2,143 | 31.4% |
| Total Formulations | 136,988 | 127,613 | 7.3% |
| API | 12,999 | 13,465 | -3.5% |
| Total Product sales | 149,987 | 141,078 | 6.3% |
| NCE licensing income | 1,441 | 2,103 | -31.5% |
| Consolidated Sales | 151,428 | 143,181 | 5.8% |
Regulatory Update
The following facilities were inspected during Q4 FY2020 and/or received closure reports in Q4 FY2020 / Q1 FY2021:
Operational Highlights
North America
Lupin’s North America sales for FY2020 were INR 58,212 mn compared to INR 55,924 mn in FY 2019; accounting for 38% of Lupin’s global sales. Q4 FY2020 sales were INR 15,791 mn, up 15% compared to INR 13,766 mn during Q3 FY2020.
India
Lupin’s India formulation sales for FY2020 were INR 51,385 mn, compared to INR 46,382 mn in FY 2019; accounting for 34% of Lupin’s global sales. Q4 FY2020 sales were INR 11,920 mn, compared to sales of INR 12,969 mn during Q3 FY2020 and up 13% compared to sales of INR 10,525 mn during Q4 FY2019.
During the quarter, India Region Formulation sales grew by 15% compared to Q4 FY2019.
Lupin is the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT March 2020).
Europe, Middle-East and Africa (EMEA)
Lupin’s EMEA sales for FY2020 were INR 12,364 mn, compared to INR 11,906 mn in FY 2019; accounting for 8% of Lupin’s global sales. Q4 FY2020 sales were INR 3,650 mn, compared to sales of INR 2,913 mn during Q3 FY2020 and up 7% as compared to sales of INR 3,397 mn during Q4 FY2019.
Lupin’s South Africa sales were ZAR 1,219 mn for FY2020, compared to a sales of ZAR 1,162 mn for FY2019. Q4 FY2020 sales were ZAR 374 mn, compared to ZAR 289 mn during Q3 FY2020 and ZAR 342 mn during Q4 FY2019.
Lupin is the 4th largest generic player in the South African market by prescription (IQVIA February 2020).
Lupin’s Germany sales were EUR 36.2 mn for FY2020, compared to a sales of EUR 28.7 mn for FY2019. Q4 FY2020 sales were EUR 9.3 mn, compared to EUR 9.5 mn during Q3 FY2020 and EUR 7.1 mn during Q4 FY2019.
Latin America (LATAM)
Lupin’s LATAM sales for FY2020 were INR 6,143 mn, compared to INR 5,658 mn in FY 2019; accounting for 4% of Lupin’s global sales. Q4 FY2020 sales were INR 1,353 mn, compared to sales of INR 1,796 mn during Q3 FY2020 and sales of INR 1,385 mn during Q4 FY2019.
Lupin’s Brazil sales were BRL 177 mn for FY2020, compared to a sales of BRL 145 mn for FY2019. Q4 FY2020 sales were BRL 37 mn, compared to BRL 48 mn during Q3 FY2020 and BRL 36 mn during Q4 FY2019.
Lupin’s Mexico sales were MXN 691 mn for FY2020, compared to a sales of MXN 674 mn for FY2019. Q4 FY2020 sales were MXN 171 mn, compared to MXN 185 mn during Q3 FY2020 and MXN 179 mn during Q4 FY2019.
Asia-Pacific (APAC)
Lupin’s APAC sales for FY2020 were INR 6,069 mn, compared to INR 5,600 mn in FY 2019; accounting for 4% of Lupin’s global sales. Q4 FY2020 sales were INR 1,447 mn, compared to sales of INR 1,722 mn during Q3 FY2020 and sales of INR 1,712 mn during Q4 FY2019.
Lupin’s Philippines sales were PHP 1,874 mn for FY2020, compared to a sales of PHP 1,696 mn for FY2019. Q4 FY2020 sales were PHP 522 mn, compared to PHP 580 mn during Q3 FY2020 and PHP 557 mn during Q4 FY2019.
Lupin’s Australia sales were AUD 48.0 mn for FY2020, compared to a sales of AUD 46.6 mn for FY2019. Q4 FY2020 sales were AUD 13.0 mn, compared to AUD 11.6 mn during Q3 FY2020 and AUD 11.4 mn during Q4 FY2019.
Global API
Lupin’s Global API sales for FY2020 were INR 12,999 mn, compared to INR 13,465 mn in FY 2019; accounting for 9% of Lupin’s global sales. Q4 FY2020 sales were INR 3,286 mn, compared to sales of INR 3,173 mn during Q3 FY2020 and up 13% as compared to sales of INR 2,912 mn during Q4 FY2019.
Research and Development
Investment in R&D for continued operations amounted to INR 15,538 mn (10.3% of sales) for FY2020 and INR 3,442 mn (9.1% of sales) for Q4 FY2020.
Lupin received approval for 1 ANDA from the U.S. FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 430 as of March 31, 2020, with the company having received 272 approvals to date.
The Company now has 43 First-to-Files (FTF) filings including 14 exclusive FTF opportunities. Cumulative DMF filings stand at 197 as of March 31, 2020.
About Lupin Limited
Lupin is an innovation-led transnational pharmaceutical company headquartered in Mumbai, India. The Company develops and commercializes a wide range of branded and generic formulations, biotechnology products and APIs in over 100 markets in the U.S., India, South Africa and across Asia Pacific (APAC), Latin America (LATAM), Europe and Middle-East regions.
The Company enjoys leadership position in the cardiovascular, anti-diabetic, and respiratory segments and has significant presence in the anti-infective, gastro-intestinal (GI), central nervous system (CNS) and women’s health areas. Lupin is the third largest pharmaceutical company in the U.S. by prescriptions. The Company invests 10.3% of its revenues on research and development.
Lupin has 15 manufacturing sites, seven research centers, more than 20,000 professionals working globally, and has been consistently recognized as a ‘Great Place to Work’ in the Biotechnology & Pharmaceuticals sector.
Please visit www.lupin.com for more information.
Follow us on
Twitter: www.twitter.com/LupinGlobal
LinkedIn: www.linkedin.com/company/lupin
Facebook: www.facebook.com/LupinWorld
For further information or queries please contact –
Arvind Bothra Head – Investor Relations/Corporate M&A Email: arvindbothra@lupin.com | Manjira Sharma General Manager – Corporate Communications Email: manjirasharma@lupin.com |
