View on Lupin Limited 1QFY2016 Results: Angel Broking

Views of Ms. Sarabjit Kour Nangra (VP Research - Pharma, Angel Broking) on Lupin Limited 1QFY2016 Results:

"For 1QFY2016, the company announced numbers lower than expected. On sales front the company, posted a dip of 6.4% yoy to end the period at INR 3074cr V/s INR 3600cr expected. Overall, the formulation (INR 2748.6cr) posted sales of 8.0% and API (INR 325.7cr) an 11% yoy growth. The formulation sales dipped, on back of US (INR 1109.6cr) posted a 26% yoy dip, on back of few launches and base impact. Another export destination Japan (INR 323.1cr), posted a yoy dip of 5.0%, mainly on back of currency. Sales in JPY terms grew 6% to JPY 6,178mn during the quarter from JPY 5,823mn. Lupin's sale to Europe (INR 85.6cr) and India (INR 885.1cr) posted a yoy growth of 21% and 16% respectively. ROW (INR 182.6cr) posted a strong growth of 44% in 1QFY2016.

On the operating front, the gross margins came in at 68.0% V/s 65.5% expected and V/s 67.9% in corresponding period. However, EBITDA margins came in at 24.2% V/s 27.0% expected V/s 32.2% in 1QFY2015. This was mainly on back of lower sales and the R&D expenditure, which rose by 28.4% yoy to end the period at 10.2% in 1QFY2016 V/s 7.4% in 1QFY2015. The other income during the quarter rose to INR 151.1cr V/s 85.1cr in 1QFY2015, also the Tax as % of PBT rose by 33.3% V/s 39.0% in 1QFY2015.Consequently; the PAT, came in at INR 525.5cr V/s INR 749cr expected and INR 624cr in 1QFY2015, a expected a yoy de-growth of 16.0%. We are NEUTRAL on the stock, given the valuations."

Shares of LUPIN LTD. was last trading in BSE at Rs.1728.6 as compared to the previous close of Rs. 1824.05. The total number of shares traded during the day was 472596 in over 24466 trades.

The stock hit an intraday high of Rs. 1835 and intraday low of 1716. The net turnover during the day was Rs. 827678745.

Source : Equity Bulls

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