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Lupin has evolved into a fully-integrated formulations producer, with the US contributing to 38% of its topline…

The country's fourth-largest pharma company has evolved into a fully-integrated API and formulations producer. The US contributes 38 per cent to the topline (FY12), India (30 per cent), Japan (12 per cent), EU (3 per cent) and rest of the world (17 per cent). For the nine months ended December 2012, Lupin's revenue growth came in at a robust 36.8 per cent.

Outlook and valuations
If India operations do bounce back, the company should see further improvement in valuations. According to Saion Mukherjee of Nomura Equity Research, Lupin should see its earnings grow by 38 per cent in FY13 (y-o-y). The only drag at the moment appears to be domestic sales. Growth slowed to 14 per cent (Q3FY13) compared to 18 per cent in the September 2013 quarter and was far lower than 30 per cent growth in Q3FY12. Lupin has guided 18-19 per cent growth in this segment for FY13. Lupin trades at 25.3 times its TTM earnings.

How they did it
• Major part of outperformance came from the US business which grew at 68 per cent by the success of Suprax and Tricor
• Tricor is estimated to have contributed $35 million in which Lupin has a 35 per cent market share.
• Earlier launches of Fortamet, Combivir and Geodon and improvement in Suprax has helped the company de-risk US revenues