ICICI Securities: Lupin’s U.S. Business Disappoints In Q1; Positive Outlook Aided By Cost Control Initiatives

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..ICICI Securities Report.Lupin Ltd.’s Q1 FY21 performance was below our expectations mainly due to weak U.S. sales which declined 25.9% QoQ.Consolidated revenues declined 9.0% to Rs 35.3 billion (our estimate Rs 36.9 billion) and Ebitda margin dropped 550 basis points YoY to 13.8% (flat QoQ), but came above our estimate of 13.0% despite weak U.S. sales.We believe the U.S. business would gradually ramp-up with improving traction in Levothyroxine, launch of ProAir in September 2020 and approximately 15 new launches in FY21.Additionally, cost control initiatives would aid margin improvement. We expect the revenue mix to improve going ahead with higher India and U.S. sales which would contribute approximately 73% to sales and approximately 75% to Ebitda.The company would be providing Goa, Somerset and Pithampur facilities (all under Official Action Indicated status), to U.S. Food and Drug Administration for reinspection in next few months..Click on the attachment to read the full report:.DISCLAIMERThis 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.

ICICI Securities: Lupin’s U.S. Business Disappoints In Q1; Positive Outlook Aided By Cost Control Initiatives

ICICI Securities: Lupin’s U.S. Business Disappoints In Q1; Positive Outlook Aided By Cost Control Initiatives

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