Lupin Q2 Result Update
About the Company:
Lupin was founded in 1968 by Desh Bandhu Gupta who was a professor of chemistry at BITS-Pilani, Rajasthan. Gupta moved to Mumbai in the 60s to work on his business enterprise for which initially he had initially borrowed Rs 5000 from his wife to fund his venture. Subsequent funding from Central Bank of India, the company was able to start their manufacturing facility for producing folic acid and iron tablets for Government of India mother and child health program. Later Lupin started manufacturing anti TB drugs which at one point formed 36% of the company sales and was considered as the largest TB drugs manufacturer in the world.
Lupin's businesses encompass the entire pharmaceutical value chain, ranging from branded and generic formulations, APIs, advanced drug delivery systems to biotechnology. The company's drugs reach 70 countries with a footprint that covers advanced markets such as USA, Europe, Japan, Australia as well as emerging markets including India.
QoQ & YoY Performance:
India’s one of the leading pharma company has declared the results for the second quarter of financial year ending March 2020.
- QoQ Performance: Consolidated Net revenue of the company recorded to Rs.43596.50 million, down by 1.33% in the September quarter of FY20. Total expenditure (excluding interest and depreciation expenses) are Rs.36289.1 million, is up by 1.99%. EBITDA numbers decreased by 7.34%.
- YoY Performance: The Company has reported a 10.34% increase in sales/revenue while expenditure (excluding interest and depreciation expenses) of the company have witnessed an uptake by 6.69%. EBITDA numbers surged by 10.73%.
- Profitability of the company: Net profits of the company resulted in loss of Rs.1234.4 million, fell by 140.78% QoQ and fell by 147.77% YoY.
As per Lokesh Sethia, SEBI Registered Research Analyst, the stock was closed at Rs.754.8 per share in last trading session. The Company reported loss because of global weak trend. So, we are recommending to avoid the stock.