Lupin shares slide 4% amid profit booking post-March quarter results


Stocks of Lupin dig 4 per cent to Rs 1,165.95 on the BSE in the intra-day trade on Friday on profit booking after the company’s consolidated sales declined 0.8 per cent year on year (YoY) to Rs 3,759 crore for the quarter ended March 31, 2021 (Q4FY21), led by a YoY decline in the US and in API (active pharmaceutical ingredient) sales. The company had reported sales of Rs 3,791 crore in the same period of FY20.

During the past six trading days, Lupin excelled in the market and surged 15 per cent, as against a per cent rise in the S&P BSE Sensex till Wednesday. The stock had touched a 52-week high of Rs 1,246.30 on Tuesday, May 11, 2021.

During the quarter under review, the company’s profit after tax grew by 18.9 per cent to Rs 464.2 crore from Rs 390.3 crore in the year-ago quarter. Earnings before interest, taxes, depreciation and amortization (Ebitda) margin also increased 500 basis points (bps) YoY at 18.6 per cent from 13.8 per cent in Q4FY20. On a sequential basis, EBITDA margins decreased 180 bps from 20.6 per cent in Q3FY21.

Helped by the strong ramp-up of inline products and meaningful new product launches, the management is confident of a solid rise trajectory and continued margin expansion.

The numbers, however, were marginally below Street estimates. ICICI Securities, for instance, says that Lupin’s Q4FY21 operational performance was slightly below their estimates led by a weak Flu season in the US and a YoY decline in API sales.