Lupin shares jump over 8% after September quarter results

Shares of drug maker Lupin rallied as much as 8.6% to Rs 754 in Thursday’s intraday trade after the company said that its consolidated net profit stood at Rs 130 crore for the second quarter ended September 30, 2022. It reported a net loss of Rs 2,098 crore in the July-September period of the previous fiscal.

Total revenue from operations of the company rose to Rs 4,145 crore for the period under review as compared to Rs 4,091 crore in the year-ago period.

Manufacturing and other expenses were 30% of sales at Rs 1,226.8 crore compared to Rs 1,191.6 crore in Q1 FY2023. Investment in R&D for the quarter was Rs 337.6 crore (8.3% of sales), Lupin said in a BSE filing.

North America sales for Q2 FY2023 were Rs 1,329.5 crore, up 31.6% compared to Rs 1,010.4 crore in Q1 FY2023. India formulation sales for Q2 FY2023 were Rs 1,584.1 crore, up 6.2% as compared to Rs 1,492 crore in Q1 FY2023.

Brokerage firm Nomura reaffirmed its buy rating on Lupin with a target price of Rs 863, suggesting an upside potential of 17% from the current market price of Rs 737.

“Lupin’s 2QFY23 sales and EBITDA came in 2.8%/11.7% above our estimates. Net earnings came in 12% below our forecasts due to higher interest income expense, lower other income and higher depreciation," Nomura said.

At 10.07 am, the scrip was trading 6.19% higher at Rs 737 over its previous day’s closing price of Rs 694.05 apiece.

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