BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Dolat Capital Report
FY20 was a redemption for Lupin Ltd. as its U.S. business revenues reported growth (albeit marginal 3% YoY) post a declining phase in FY18 and FY19.
However, losses in its U.S. subsidiaries have increased 3 times at Rs 27 billion versus Rs 9 billion loss in FY19. This we believe is due to branded specialty portfolio (largely Solosec). Profitability of the standalone business halved to Rs 7.3 billion, even adjusting for the exceptional items, profits are lower by 20% YoY.
Lupin utilized its deferred tax asset to offset losses, but has not created any new ones thus elevating the tax rate. Selling, general and administrative expense (SG&A) and employee expenses rose 10% and 20% respectively, whereas research and development investment dipped 2% YoY.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
As a Subscriber you get
Stories
RECOMMENDED FOR YOU
POPULAR