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Lupin Q4 results today: Drugmaker expected to swing to profit

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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.
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