Drug firm Lupin has reported a 34.55 percent rise in its consolidated net profit to Rs 389.63 crore for the quarter ended March 2020 mainly on account of robust sales in the domestic market and lower tax expenses. The company had posted a net profit of Rs 289.56 crore for the corresponding period of the previous fiscal, Lupin said in a late night filing on Thursday.
Consolidated income from operations of the company stood at Rs 3,791 crore for the quarter under consideration as against Rs 3,807.02 crore for the same period year ago.
For the fiscal year ended March 2020, the company posted a net loss of Rs 269.39 crore. It had posted a net profit of Rs 606.55 crore for the previous fiscal year, Lupin said.
Company's income from operations for the fiscal year ended March this year stood at Rs 15,142.80 crore. It was Rs 14,318.05 crore for the year ago fiscal.
Here are the highlights of Lupin's Q4 FY20 earnings call compiled by Narnolia Financial Advisors:
Management Participants: Kamal Sharma – VC, M. Vinita Gupta – CEO, Nilesh Gupta – MD, Rajeev Sibal – Head, India Region Formulations India Region, Rajiv Pillai – Sr.VP, Corporate Planning, Ramesh Swaminathan - CFO & Head Corporate Affairs
The US sales for the quarter improved 14 percent QoQ to USD 212 million on account of COVID-19 related stocking up, ramp up in Levothyroxine- with market share increasing from 5 percent in Q3 FY20 to 13 percent in Q4 FY20, and ramp-up in the flu portfolio. On the speciality front, Solosec has been significantly impacted due to COVID-19 disruption from February. The scrips were down by 40 percent, though in the last four weeks- there has been stabilisation. The company has taken significant measures to optimise this business, Lupin's management said.
The company expects the specialty portfolio to breakeven in FY22. The major growth driver in the US for FY21- the company expects Albuterol launch in the second half of the year and increase in the Levothyroxine market share to around 20-25 percent. Albuterol is facing supply shortage in US as its demand rose to 35-40 percent in the month of March and April, though has stabilized now. Albuterol is 6 player market currently with generics (including AGs) having 60 percent market share.
The company expects India business to be soft in Q1 FY20 as acute segment has seen significant de-growth in the month of May 2020, Chronic also hasn’t grown. The company expects a revival in Q2 FY20. On the regulatory front- the company has completed the final update for the Goa plant and expects FDA to re-inspect the facility in the next couple of months.
Pithampur plant- additional work is pending, post that re-inspection is expected. Q1 FY21 is expected to be soft on the revenue front on account of COVID impact in India & America and forex fluctuations in the Emerging market. The company has repaid the debt amounting to USD 267 million in FY20. The working loan has increased from December 2020 to March 2020, which is expected to go down in the next couple of weeks, they said.
R&D spends is expected to be in the range of Rs 1,600 crore. The company has undertook significant measures in terms of optimising capital allocation and that will lead to normalisation in ETR from 40 percent range to 34-35 percent range in FY21. The company has undertaken Gavis impairment to strengthen the balance sheet and this will result in the better ratios going ahead, the management added.
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