Name: Latest research reports of Lupin Ltd. authored by ICICI Securities Limited and published by - Trendlyne research reports.
Item: Lupin Ltd.
Rating: 1
Author: ICICI Securities Limited

Rationalisation of US portfolio impacted Q1

Sell: Lupin Ltd.

Recommendation Target

ICICI Securities Limited

Lupin’s Q1FY23 performance was disappointing on profitability front. It reported its worst-ever EBITDA margin of 6.2% (I-Sec: 7.3%) due to restructuring in the US as well as continuous impact of inflation on raw materials and freight. US revenue sharply declined to US$121mn (I-Sec: 180mn) vs US$172/181mn YoY/QoQ on ~US$40-50mn one-time impact of restructuring, inventory write-offs and withdrawal of products.