Lupin (500257) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 delivered strong double-digit revenue and margin growth, with consolidated revenue at ₹56,003.3 million, up 16% YoY, and EBITDA margin at 23.3%, driven by new product launches, operational improvements, and lower R&D spend.

• Net profit after tax attributable to owners surged to ₹8,013.1 million, up 77% YoY and 123% sequentially.

• All key geographies delivered robust sales and profitability, with North America up 28% YoY, India up 18% YoY, and EMEA up 26% YoY.

• Quality and compliance improved, with positive inspection outcomes at multiple facilities.

• Consistent improvement in profitability, driven by strong execution across geographies and segments.

Financial highlights

• Q1 FY25 sales reached ₹56,003.3 million, up 16% YoY; excluding last year's $25M NCE income, sales grew 22% YoY.

• EBITDA was ₹12,864 million (23.3% margin), up 50% YoY and 29% QoQ.

• Net income was ₹8,013 million (14.5% margin), up 77% YoY and 123% QoQ.

• Gross margin improved to 68.4% from 67.8% in Q4 and 63.8% ex-NCE in Q1 last year.

• R&D spend was ₹3,567 million (6.3% of sales).

Outlook and guidance

• US business expected to grow high single-digit in FY25, with further ramp-up from new launches.

• Poised to launch ~20 new products in India in FY25.

• R&D spend projected at ₹1,800 crore for FY25, with focus on complex generics, respiratory, and injectables.

• Strategic interventions to achieve 50% water recycling by 2025 and ongoing decarbonization efforts.

• Confident of maintaining gross margins around current levels barring unforeseen events.