Lupin's shares reach 52-week high following impressive Q2 earnings
Pharmaceutical giant Lupin saw its shares climb 1.7% and reach a 52-week high of Rs. 1,232.10 on NSE on November 9, following the company's outstanding Q2 FY24 earnings report. The company's net profit surged from Rs. 129.73 crore to Rs. 489.67 crore, driven by a robust 20% YoY revenue growth to Rs. 4,939.20 crore. Lupin's Managing Director, Nilesh Gupta, attributed this success to growth in target regions, effective cost management, and achieving operating leverage.
US sales surge over 40% following launch of Spiriva
Lupin's revenue got a major boost, thanks to a remarkable 40% YoY surge in US sales, reaching Rs. 1,866.60 crore. The success was driven by the introduction of the respiratory drug Spiriva during the quarter, contributing to 38% of Lupin's global sales. Revenue from other world markets doubled to Rs. 199 crore. However, the Indian market saw a modest 7% growth, as weaker acute sales were linked to an irregular monsoon season and a slower uptake in viral infections.
Operational performance improvement boosts EBITDA margin
Lupin's operational performance significantly improved as the EBITDA margin widened by 800 basis points YoY to 19.4%. Analysts had predicted that Lupin would post strong results within the pharmaceutical sector, primarily due to the anticipated robust US sales following Spiriva's launch. The company had been struggling with lower margins for multiple quarters, and the marked improvement in operational performance seems to have been well-received by investors. At the time of writing, Lupin's share traded 0.85% up at Rs. 1,221.40 apiece.
