Quarterly Results: Lupin Ltd

Technical View: 

Lupin Ltd., is currently trading at Rs. 1526, up by 16.7 points or 1.11% from its earlier closing of Rs. 1509.3 on the BSE.
The scrip has touched a high and low of Rs. 1563.1 and Rs. 1383.5 respectively, after opening at 1426. In totality 3182823(NSE+BSE) shares were traded on the counter; and the stock is currently trading below its 200 DMA.

Consolidated Results Q2FY17:

Lupin’s Q2FY17 consolidated numbers have come in below the street estimates. Revenue has come in 13.1% lesser than the estimated Rs 4,938 cr. EBITDA is 16.4% lesser than the estimated figure of Rs 1,230 cr.  Net profit is 10.7% lesser than the consensus estimate of Rs 737 cr.

Lupin's consolidated net revenue for the quarter has surged 28.9% yoy to Rs 4,291 cr. This was majorly anchored by a 69.8% yoy surge in US formulation sales and a 35.2% yoy surge in Japanese sales.

The company's EBITDA has jumped by 55.2% yoy to Rs 1,028 cr while EBITDA margins have expanded 406 bps yoy to 24%. This can be attributed to a 5.7% dip in material costs to 29.5% of sales.

Lupin's net profit has climbed by 56.2% yoy to Rs 659 cr.

Investment in research is Rs 571 cr (13.6% of sales.)