The share price of pharma major Lupin declined over 7 percent on Wednesday after the company reported its June quarter earnings showing weakness in the US business.
The company’s consolidated net profit in Q1FY22 rose to Rs 542.46 crore from Rs 106.9 crore, while revenue increased 21 percent to Rs 4,270.19 crore from Rs 3,527.6 crore, YoY.
However, Lupin’s North America sales for Q1FY22 were Rs 13,330 million, down 10.8 percent compared to Rs 14,952 million, QoQ. The US sales account for 35 percent of Lupin’s global sales.
In dollar terms, US sales were at $172 million as compared to $195 million, QoQ, and $157 million, YoY.
India formulation sales for the quarter rose 27.2 percent to Rs 1,636.2 crore from Rs 1,286.6 crore, QoQ, and 27.3 percent, YoY.
“US business was around $20 million lower than estimates. Albuterol came in lighter than it should have. Some price erosion impacted the US business,” Lupin's management told CNBC-TV18.
The company expects US business to pick up from Q2 and sees a significant increase in H2.
Global brokerage firm Nomura said that Lupin reported a weak quarter as US business fell materially on a sequential basis.
All the important parameters such as sales, PAT and EBITDA were below estimates, said the brokerage.
Nomura expects the company’s financial performance will significantly get uplifted in the second half of FY22. Its estimates have factored in licensing income of $50 million from Boehringer Ingelheim.
It maintained a Buy rating with a target price of Rs 1,399 per share.
At 12:20 pm, the shares of Lupin were trading 6.47 percent lower at Rs 1,046.65 apiece on the BSE.