Lupins Q2FY15 numbers were below estimates on the operational front. Sales grew 18.4% y-o-y to Rs 3,120 crore (3% miss), ebitda 25% y-o-y to Rs 770 crore (7% miss), while reported PAT grew 57% y-o-y to Rs 630 crore (25% beat).
Revenue growth was driven by 20% y-o-y growth in India (estimated 16%) and 23% y-o-y growth in the US (estimated 40%). US generics declined sequentially due to pricing pressure in products launched over the last two to three quarters.
The company expects the US generics to grow 20-22% due to a rich generic pipeline. Lupin expects its US branded business to contribute 30% to the overall US sales over the next few years. Indian formulations to grow 16-18%. In Japan, Irom to report good numbers from next fiscal and Kyowa will maintain 15% growth in constant JPY, despite recent price cut. Overall ebitda guidance maintained at 28-30% for FY15.
By Motilal Oswal