Pharmaceuticals company Lupin announced Q1FY23 results:

• Income Statement highlights:
  • Gross Profit was Rs 19,942 million compared to Rs 22,323 million in Q4 FY2022, with margin of 55.3%
  • Personnel cost was 21.6% of sales at Rs 7,785 million compared to Rs 7,032 million in Q4 FY2022
  • Manufacturing and other expenses were 33.1% of sales at Rs 11,916 million compared to Rs 13,212 million in Q4 FY2022
  • Investment in R&D for the quarter was Rs 3,477.8 million (9.6% of sales)
• Balance Sheet highlights:
  • Operating working capital was Rs 58,983 million as on June 30, 2022
  • Capital Expenditure for the quarter was Rs 1,613 million
  • Net Debt as on June 30, 2022 stands at Rs 25,143 million
  • Net Debt-Equity for the company as on June 30, 2022 stands at 0.21

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited said, “Our numbers are muted this quarter, but we expect a strong bounce back Q2 onwards. Our U.S. sales took a significant dip as we took several strategic decisions to pave the way for building a sustainable and profitable business. During the quarter we pared down inventories and we took shelf stock adjustments on select products. While we continue to see price erosion in our US business and inflation in input materials, our India business continues to do well growing ahead of the market. All other geographies continue to perform well, and we have now implemented several optimization measures including addressing our workforce in operations and supporting functions to improve our cost position and ensure competitiveness. While the benefits of this optimization will start accruing Q2 onwards, we are now focused on getting back on the growth path driven by growth in key markets like India and multiple important complex generic launches in the US and other developed markets. On the compliance front, we have now satisfactorily addressed both Goa and Somerset, and continue our efforts to be best in class in quality and compliance across our network.”

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