Drug firm Lupin is slated to release its financial results for the April – June quarter of the fiscal year 2020-21 (Q1FY21) on Thursday (August 6), and expects net profit to decline by 24 percent.
The company's revenue is expected to decline by 15 percent, EBITDA decline is expected at 35 percent, margins at 14.3 percent - that is the contraction of almost 500 basis points on a year-on- year basis,
There are three reasons for the revenue decline that we will see this quarter. First is the Kyowa divestment. Second is the underperformance in the domestic formulations business due COVID lockdown. Third, there was a high base in the US business because of the one drug that is gRanexa.
Apart from that, there will be some benefit coming from Levothyroxine ramp-up, which is an important drug for the company.
The US market generally see a revenue decline and for this quarter, it is expected between $190-200 million. Also, seasonally it is a weak quarter for the US sales.