Q1 FY23 (APR-JUN 2022) Concall Summary

LUPIN LIMITED
Concall Date: 4 August 2022

Revenue: ₹3,743.8 cr (▼12.3%) Net Profit: ₹-86.8 cr (▼115.8%)

FINANCIAL HIGHLIGHTS
PARTICULARS Q1 FY23 Q1 FY22 Change %
(₹ cr) (₹ cr) YoY
Revenue from Operations 3,744 4,270 12.3%
EBITDA 238 993 76%
Net Profit (87) 548 115.8%

 In Q1 FY23, revenue was down mainly on account of performance in the US business taking a
significant dip. Further, the quarter was challenging with headwinds in the US on the back of price
erosion and inflation in input materials and freight.
 Gross profit was ₹1,994.2 crore in Q1 FY23 as compared to ₹2,709.4 crore in Q1 FY22.
 As on 30th June 2022, the company had a net debt of ₹2,514.3 crore and the net debt-equity was
0.21x.

OPERATING HIGHLIGHTS
 The investment in research & development (R&D) expenses amounted to ₹347.8 crore (9.6% of
sales) in Q1 FY23.
 Product sales mix for the quarter was: India 41%, North America 28%, growth market (Latin America
& Asia-Pacific) 12%, Europe, Middle-East & Africa (EMEA) 9%, active pharmaceutical ingredient (API)
7% and remaining from ROW (rest of world).
 In Q1 FY23, personnel cost stood at ₹778.5 crore as compared to ₹703.2 crore in Q4 FY22.
 During the quarter, manufacturing and other expenses was 33.1% of sales at ₹1,191.6 crore as
compared to ₹1,321.2 crore in Q4 FY22.
 Capital expenditure during the quarter was ₹161.3 crore.

BUSINESS HIGHLIGHTS
INDIA
 India business continued to do well, as it grew ahead of the market. The formulation sales for Q1
FY23 were ₹1,492 crore, up 10.4% as compared to Q4 FY22 and down by 8.8% as compared to Q1
FY22.
 Indian region formulations sales grew by 9.9% during the quarter as compared to Q4 FY22. The
same was down 2.9% on a YoY basis.
 Concall Summary
LUPIN LIMITED

 The company launched 6 brands across therapies, during the quarter.

NORTH AMERICA
 North America sales for Q1 FY23 were ₹1,010.4 crore, down 28.7% as compared to Q4 FY22 and
24.2% as compared to Q1 FY22.

OTHER MARKETS
 Global API Sales for Q1 FY23 were ₹255.1 crore, up 15.8% QoQ and 3.7% YoY.
 Growth Markets registered sales of ₹423.7 crore for Q1 FY23, registering a growth 11.2% as
compared to ₹381 crore in Q4 FY22 and the same was up by 27.3% on a YoY basis.
 EMEA sales for Q1 FY23 were ₹333.5 crore, down 18.1% as compared to Q4 FY22 and up 27.6% as
compared to Q1 FY22.

UPDATES
 During the quarter, they pared down inventories and also took shelf stock adjustments on selected
products.
 The company filed 4 ANDAs (abbreviated new drug applications) during the quarter, received 4
ANDA approvals from the US FDA (Food & Drug Administration) and launched 1 product during the
quarter in the US. The company now has 167 generic products in the US.
 The Company now has 54 First-to-File (FTF) filings including 21 exclusive FTF opportunities.
Cumulative US DMF (drug master file) filings stood at 173 as on 30th June 2022.

FUTURE OUTLOOK
 Going forward, they expect their revenue to increase on account of new therapies launched in India
and multiple important complex generic launches in the US & other developed markets.
 They implemented several optimization measures including addressing workforce in operations and
supporting functions to improve the cost position and ensure competitiveness. These benefits would
start to accrue Q2 FY23 onwards.

SEBI Registration no: IHN3000007493

Disclaimer:

This document has been prepared to provide a brief summary of the conference call conducted by the companies
and is intended to be used for learning enhancements. Nothing contained herein should be construed as a
recommendation on any stock or sector.