Mumbai: Pharma major Lupin Limited [BSE: 500257 | NSE: LUPIN] reported its financial performance for the quarter ending December 31, 2020. These unaudited results were taken on record by the Board of Directors at a meeting held today.
Financial Highlights (from Continuing Operations) – Consolidated IND-AS
Amt in INR mn
| Quarter | YTD | |||||||
| Q3 FY2021 | Q2 FY2021 | QoQ Growth % | Q3 FY2020 | YoY Growth % | 9M FY2021 | 9M FY2020 | YoY Growth % | |
| Sales | 39,173 | 37,818 | 3.6% | 37,161 | 5.4% | 111,677 | 113,518 | 1.6% |
| EBITDA before Forex & Other Income | 8,064 | 6,354 | 26.9% | 4,337 | 85.9% | 19,503 | 18,353 | 6.3% |
| EBITDA Margin (%) | 20.6% | 16.8% | 380 bps | 11.7% | 890 bps | 17.5% | 16.2% | 130 bps |
| PBT before Exceptional items | 5,247 | 3,598 | 45.8% | 1,809 | 190.0% | 11,569 | 10,931 | 5.8% |
| PBT after Exceptional Items | 5,247 | 3,598 | 45.8% | (1,078) | NA | 11,569 | 2,579 | NA |
| PAT after Exceptional Items | 4,383 | 2,110 | 107.7% | (8,685) | NA | 7,562 | (7,891) | NA |
Income Statement highlights – Q3 FY2021
Balance Sheet highlights
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “We continue our trajectory of improved profitability and sustainable business growth. All our major businesses delivered robust growth amidst pandemic related challenges and a weak flu season, reflecting the resilience of our business. The ramp up of our complex generics and inline business helped expand our gross margins, while cost controls delivered the desired operating leverage. Delivering on quality and compliance remains an important organizational priority.”
Consolidated Financial Results – Q3 FY2021
Amt in INR mn
| Particulars | Q3 FY2021 | % of sales | Q2 FY2021 | % of sales | QoQ Growth % | Q3 FY2020 | % of sales | YoY Growth % |
| Sales | 39,173 | 100.0% | 37,818 | 100.0% | 3.6% | 37,161 | 100.0% | 5.4% |
| Other operating income | 1,001 | 2.6% | 532 | 1.4% | 88.2% | 532 | 1.4% | 88.2% |
| Total Revenue from operations | 40,174 | 102.6% | 38,350 | 101.4% | 4.8% | 37,693 | 101.4% | 6.6% |
| Material cost | 13,750 | 35.1% | 13,817 | 36.5% | -0.5% | 13,593 | 36.6% | 1.2% |
| Gross Profit (Excl. Other op. income) | 25,423 | 64.9% | 24,001 | 63.5% | 5.9% | 23,568 | 63.4% | 7.9% |
| Employee cost | 7,068 | 18.0% | 6,854 | 18.1% | 3.1% | 7,407 | 19.9% | -4.6% |
| Manufacturing & Other expenses | 11,569 | 29.5% | 11,868 | 31.4% | -2.5% | 12,402 | 33.4% | -6.7% |
| Other Income | 212 | 0.5% | 250 | 0.7% | -15.2% | 936 | 2.5% | -77.4% |
| EBITDA | 7,999 | 20.4% | 6,061 | 16.0% | 32.0% | 5,227 | 14.1% | 53.0% |
| Depreciation, Amortization & Impairment Expense | 2,443 | 6.2% | 2,127 | 5.6% | 14.9% | 2,532 | 6.8% | -3.5% |
| EBIT | 5,556 | 14.2% | 3,934 | 10.4% | 41.2% | 2,695 | 7.3% | 106.2% |
| Finance cost | 309 | 0.8% | 336 | 0.9% | -8.0% | 886 | 2.4% | -65.1% |
| PBT before Exceptional items | 5,247 | 13.4% | 3,598 | 9.5% | 45.8% | 1,809 | 4.9% | 190.0% |
| Exceptional items | – | 0.0% | – | 0.0% | 2,887 | 7.8% | -100.0% | |
| PBT after Exceptional items | 5,247 | 13.4% | 3,598 | 9.5% | 45.8% | (1,078) | -2.9% | NA |
| Tax | 835 | 2.1% | 1,467 | 3.9% | -43.1% | 7,670 | 20.6% | -89.1% |
| Profit after Tax | 4,412 | 11.3% | 2,131 | 5.6% | 107.0% | (8,748) | -23.5% | NA |
| (+) Share of Profit from JV | 2 | 0.0% | 4 | 0.0% | -50.0% | 10 | 0.0% | -80.0% |
| (-) Non-Controlling Interest | 31 | 0.1% | 25 | 0.1% | 24.0% | (53) | -0.1% | NA |
| Net Profit from continuing operations | 4,383 | 11.2% | 2,110 | 5.6% | 107.7% | (8,685) | -23.4% | NA |
| Profit/(Loss) from discontinued operations | – | NA | – | NA | NA | 335 | 0.9% | -100.0% |
| Profit/(Loss) for the period | 4,383 | 11.2% | 2,110 | 5.6% | 107.7% | (8,350) | -22.5% | NA |
Consolidated Financial Results – 9M FY2021
Amt in INR mn
| Particulars | 9M FY2021 | % of sales | 9M FY2020 | % of sales | YoY Growth % |
| Sales | 111,677 | 100.0% | 113,518 | 100.0% | -1.6% |
| Other operating income | 2,125 | 1.9% | 1,772 | 1.6% | 19.9% |
| Total Revenue from operations | 113,802 | 101.9% | 115,290 | 101.6% | -1.3% |
| Material cost | 40,446 | 36.2% | 40,256 | 35.5% | 0.5% |
| Gross Profit (Excl. Other op. income) | 71,231 | 63.8% | 73,262 | 64.5% | -2.8% |
| Employee cost | 21,857 | 19.6% | 22,233 | 19.6% | -1.7% |
| Manufacturing & Other expenses | 33,015 | 29.6% | 34,538 | 30.4% | -4.4% |
| Other Income | 890 | 0.8% | 2,783 | 2.5% | -68.0% |
| EBITDA | 19,374 | 17.3% | 21,046 | 18.5% | -7.9% |
| Depreciation, Amortization & Impairment Expense | 6,717 | 6.0% | 7,559 | 6.7% | -11.1% |
| EBIT | 12,657 | 11.3% | 13,487 | 11.9% | -6.2% |
| Finance cost | 1,088 | 1.0% | 2,556 | 2.3% | -57.4% |
| PBT before Exceptional items | 11,569 | 10.4% | 10,931 | 9.6% | 5.8% |
| Exceptional items | – | 0.0% | 8,352 | 7.4% | -100.0% |
| PBT after Exceptional items | 11,569 | 10.4% | 2,579 | 2.3% | NA |
| Tax | 3,945 | 3.5% | 10,520 | 9.3% | -62.5% |
| Profit after Tax | 7,624 | 6.8% | (7,941) | -7.0% | NA |
| (+) Share of Profit from JV | 12 | 0.0% | 29 | 0.0% | -58.6% |
| (-) Non-Controlling Interest | 74 | 0.1% | (21) | 0.0% | NA |
| Net Profit from continuing operations | 7,562 | 6.8% | (7,891) | -7.0% | NA |
| Profit/(Loss) from discontinued operations | – | 0.0% | 1,301 | 1.1% | -100.0% |
| Profit/(Loss) for the period | 7,562 | 6.8% | (6,590) | -5.8% | NA |
Sales Mix
| Particulars | Q3 FY2021 | Q2 FY2021 | Growth QoQ | Q3 FY2020 | Growth YoY |
| North America | 14,424 | 13,984 | 3.1% | 13,766 | 4.8% |
| India | 13,669 | 13,323 | 2.6% | 12,969 | 5.4% |
| Growth Markets | 3,314 | 2,918 | 13.6% | 3,518 | -5.8% |
| EMEA | 3,272 | 3,259 | 0.4% | 2,913 | 12.3% |
| ROW | 1,056 | 595 | 77.5% | 822 | 28.5% |
| Total Formulations | 35,735 | 34,079 | 4.9% | 33,988 | 5.1% |
| API | 3,438 | 3,739 | -8.1% | 3,173 | 8.4% |
| Total Product Sales | 39,173 | 37,818 | 3.6% | 37,161 | 5.4% |
| NCE Licensing Income | – | – | – | ||
| Consolidated Sales | 39,173 | 37,818 | 3.6% | 37,161 | 5.4% |
Operational Highlights
North America
Lupin’s North America sales for Q3 FY2021 were INR 14,424 mn, up 3.1% compared to sales of INR 13,984 mn during Q2 FY2021, and sales of INR 13,766 mn during Q3 FY2020; accounting for 37% of Lupin’s global sales.
India
Lupin’s India formulation sales for Q3 FY2021 were INR 13,669 mn, up 2.6% compared to sales of INR 13,323 mn during Q2 FY2021, and sales of INR 12,969 mn during Q3 FY2020; accounting for 35% of Lupin’s global sales.
During the quarter, India Region Formulation sales grew by 5.3% compared to Q3 FY2020.
Lupin is now the 6th largest company in the Indian Pharmaceutical Market (IQVIA MAT December 2020).
Growth Markets (LATAM and APAC)
Lupin’s LATAM & APAC regions together form its Growth Markets. Growth Markets registered sales of INR 3,314 mn for Q3 FY2021, up 13.6% compared to sales of INR 2,918 mn during Q2 FY2021, and sales of INR 3,518 mn during Q3 FY2020; accounting for 8% of Lupin’s global sales.
Lupin’s Brazil sales for Q3 FY2021 were BRL 66 mn, compared to BRL 59 mn during Q2 FY2021 and BRL 48 mn during Q3 FY2020.
Lupin’s Mexico sales for Q3 FY2021 were MXN 188 mn, compared to MXN 155 mn during Q2 FY2021 and MXN 185 mn during Q3 FY2020.
Lupin’s Philippines sales for Q3 FY2021 were PHP 367 mn, compared to PHP 341 mn during Q2 FY2021 and PHP 580 mn during Q3 FY2020.
Lupin’s Australia sales for Q3 FY2021 were AUD 15.7 mn, compared to AUD 14.4 mn during Q2 FY2021 and AUD 11.6 mn during Q3 FY2020.
Europe, Middle-East and Africa (EMEA)
Lupin’s EMEA sales for Q3 FY2021 were INR 3,272 mn, up 0.4% compared to sales of INR 3,259 mn during Q2 FY2021, and sales of INR 2,913 mn during Q3 FY2020; accounting for 8% of Lupin’s global sales.
Lupin’s South Africa sales for Q3 FY2021 were ZAR 323 mn, compared to ZAR 304 mn during Q2 FY2021 and ZAR 289 mn during Q3 FY2020.
Lupin is the 3rd largest player in South Africa in the prescribed generics market (IQVIA September 2020).
Lupin’s Germany sales for Q3 FY2021 were EUR 8.1 mn, compared to EUR 8.1 mn during Q2 FY2021 and EUR 9.5 mn during Q3 FY2020.
Global API
Lupin’s Global API sales for Q3 FY2021 were INR 3,438 mn, down 8.1% compared to sales of INR 3,739 mn during Q2 FY2021, and sales of INR 3,173 mn during Q3 FY2020; accounting for 9% of Lupin’s global sales.
Research and Development
Investment in R&D was INR 3,479 mn (8.9% of sales) for Q3 FY2021 compared to INR 3,843 mn (10.2% of sales) for Q2 FY2021.
Lupin received approval for 5 ANDAs from the US FDA during the quarter. Cumulative ANDA filings with US FDA stand at 437 as of December 31, 2020, with the Company having received 285 approvals.
The Company now has 46 First-to-Files (FTF) filings including 16 exclusive FTF opportunities. Cumulative DMF filings stand at 200 as of December 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. For the nine months ended December 31, 2020, the Company invested 9.8% of its revenues on research and development.
Lupin has 15 manufacturing sites, 7 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.
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For further information or queries please contact –
Arvind Bothra Head – Investor Relations / Corporate M&A Email: arvindbothra@lupin.com Tel: +91-22 6640 8237 | Shweta Munjal Head – Corporate Communications Email: shwetamunjal@lupin.com Tel: +91-22-6640 2532 |
The Company will host its Earnings Call at 08:00 hrs IST (10:30 hrs SST/HKT, 03:30 hrs BST, 21:30 hrs US ET on January 28) on January 29, 2021, during which the leadership team will discuss the financial performance and address questions. A transcript of the conference call will be available at our website www.lupin.com.
To Join the Earnings call (through Zoom):
Please pre-register by clicking the link below on your browser
Please join the call by 07:55 hrs IST on January 29, 2021
Instructions to join the Earnings Call
Participants are requested to use a headphone/earphone while asking a question.
