Lupin will report its fourth-quarter earnings on Wednesday and analysts expect the drugmaker to swing to profit this quarter and post a near 13 percent growth in Q4 revenue.
Lupin will report its fourth-quarter earnings on Wednesday and analysts expect the drugmaker to swing to profit this quarter and post a near 13 percent growth in Q4 revenue.
The street is expecting revenue growth of 12.5 percent and EBITDA higher by 25.6 percent. Margins are seen up 19.6 percent versus 17.6 percent year-on-year.
The company is expected to report a profit of Rs 472 crore versus a loss of Rs 783.5 crore reported in the same quarter last year. In 2018, the company had taken an impairment of Gavis, which was around Rs 1,464 crore.
Revenue growth is driven by the US markets specifically on account of Ranexa generics, a chest pain drug that they had launched in February 2019 with exclusivity and the size of the drug is $750 million.
Estimates suggest Lupin can make up to $70 million from this drug. Besides, other drugs like Solosec generic, Lisinopril generic, will also aid US sales. So US sales would see an increase of around $50-90 million quarter-on-quarter. India growth is likely to be 10-12 percent.
Overall the commentary from the management would be key since the company received OAI for its two plants along with the status of Goa reinspection. Investors/analysts would also watch out for the company’s cost-cutting initiatives.
