The shares of the pharmaceutical company specializing in developing and marketing generic formulations, biotechnology products, and APIs globally are in focus after management expects to reach an EBITA Margin of 22.5 percent to 23.5 percent for FY25.
Price action
With a market capitalization of Rs. 95,632.77 Crores on Friday, the shares of Lupin Limited rose by 1.61 percent after making a high of Rs. 2088.65 compared to its previous closing price of Rs. 2055.65.
Lupin at Glance
The company specializes in generics, biotechnology, and APIs it focuses on providing high-quality, affordable medicines across various therapeutic areas, including cardiovascular, oncology, and respiratory.
Lupin is a global pharmaceutical leader with a strong presence in over 100 countries. It ranks 12th globally in generics by sales and is the largest generic company in the US, Australia, South Africa, and more.
With annual sales of $2.4 billion and 23,000+ employees, Lupin focuses on sustainable growth and innovation, operating 15 manufacturing sites and 7 R&D sites globally, and has planned to set up 58MW Renewable energy capacity by FY25.
Guidance of Lupin Ltd
According to the company’s recent conference call update, they target EBITDA margins of 22.5 percent to 23.5 percent for FY25, with an effective tax rate (ETR) of 20 percent to 21 percent for FY25 and their specialty product performance expected to be significant into the fiscal year 2027.
The company reported a 51 basis point expansion in EBITDA margins on a quarter-on-quarter basis and has strong product pipelines including 20 respiratory and 40 injectable products under development.
Financial Performace (Q3FY25)
The company’s Revenue from operations grew by 10.9 percent YoY from Rs. 5,197.4 crores in Q3FY24 to Rs. 5,767.7 crores in Q3FY25 and it grew by 1.6 percent QoQ from Rs. 5,672.7 crores in Q2FY25 to Rs. 5,767.7 crores in Q3FY25.
Its Net Profit rose 38 percent YoY from Rs. 618.7 crores in Q3FY24 to Rs. 858.8 crores in Q3FY25 and it fell by 0.06 percent QoQ from Rs. 859.4 crores in Q2FY25 to Rs. 858.8 crores in Q3FY25.
Key Business Developments (Q3FY25)
The company has acquired Eli Lilly’s Huminsulin to enhance India’s Diabetes Portfolio and they have partnered to commercialize NaMuscla in Argentina & Colombia and have filed Ranibizumab for European Union (EU) markets.
Segment Revenue
Lupin Limited segment revenue is distributed across two services as follows: pharmaceuticals segment revenue grew from Rs. 5,742 crores in Q2FY25 to Rs. 5,647.2 crores in Q3FY25 and the Others segment grew from Rs. 26.3 crores in Q2FY25 to Rs. 26.2 crores in Q3FY25.
Written by Sridhar J
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