Lupin Limited

Vinita Gupta

CEO, LUPIN LIMITED

Nilesh Gupta

MANAGING DIRECTOR, LUPIN LIMITED

Ramesh Swaminathan

EXECUTIVE DIRECTOR, GLOBAL CFO AND HEAD CORPORATE AFFAIRS, LUPIN LIMITED

11.5%

n in India starts yielding expected productivity from Q2 onwards. Our India business recorded an 11.5% growth QoQ and 10.2% growth YOY and this is after the NLEM impact as well as CIDMUS brand that we

10.2%

lding expected productivity from Q2 onwards. Our India business recorded an 11.5% growth QoQ and 10.2% growth YOY and this is after the NLEM impact as well as CIDMUS brand that we had in the base last

INR 4,742 crore

d to live up to that guidance. August 4, 2023 Sales for Q1 FY24 came in at INR 4,742 crores as compared to INR 4,330 crores in Q4 FY23, a growth of 9.5% QoQ. On a YoY basis, the company reg

INR 4,330 crore

August 4, 2023 Sales for Q1 FY24 came in at INR 4,742 crores as compared to INR 4,330 crores in Q4 FY23, a growth of 9.5% QoQ. On a YoY basis, the company registered a growth of 31.6% over

9.5%

es for Q1 FY24 came in at INR 4,742 crores as compared to INR 4,330 crores in Q4 FY23, a growth of 9.5% QoQ. On a YoY basis, the company registered a growth of 31.6% over Q1 FY23 sales of INR 3,604 cror

31.6%

4,330 crores in Q4 FY23, a growth of 9.5% QoQ. On a YoY basis, the company registered a growth of 31.6% over Q1 FY23 sales of INR 3,604 crores. The sales of Q1 FY24 included $25 mn income from Abbvie fo

INR 3,604 crore

growth of 9.5% QoQ. On a YoY basis, the company registered a growth of 31.6% over Q1 FY23 sales of INR 3,604 crores. The sales of Q1 FY24 included $25 mn income from Abbvie for key milestone of initiation of Phase

4,537 crore

bvie for key milestone of initiation of Phase 1 clinical trials. Excluding the same our sales were 4,537 crores which represented a growth of 4.8% QOQ and 25.9% YOY. Our sales growth this quarter has been rob

4.8%

e 1 clinical trials. Excluding the same our sales were 4,537 crores which represented a growth of 4.8% QOQ and 25.9% YOY. Our sales growth this quarter has been robust across all our key geographies. T

25.9%

trials. Excluding the same our sales were 4,537 crores which represented a growth of 4.8% QOQ and 25.9% YOY. Our sales growth this quarter has been robust across all our key geographies. The US market

3.6%

this quarter has been robust across all our key geographies. The US market registered a growth of 3.6% QOQ and 49% YOY (in local currency terms) whilst the India branded business registered a growth of

49%

has been robust across all our key geographies. The US market registered a growth of 3.6% QOQ and 49% YOY (in local currency terms) whilst the India branded business registered a growth of 11.5% QOQ a

“We expect to see material improvement in the rest of this fiscal year as we launch Tiotropium and other new products in the US as well as our sales force expansion in India starts yielding expected productivity from Q2 onwards.”

“On the compliance front we have made progress with positive outcomes with Pithampur Unit-2 warning letter clearance that will enable us to launch Ophthalmic products filed from the site in particular products like Prolensa where we were first to file as well as other ophthalmic products next year.”

“that will enable us to launch important products like PROLENSA, where we are first to file, as well as other ophthalmic products next year.”

“We expect fiscal year '24 to be strong with quarter-after-quarter improvement in revenues and profitability.”

“We have endeavoured to live up to that guidance.”

“We do expect this margin to sustain We have improved significantly from last year Q1, when our gross margin was 55.3% to the current levels of 63.8%.”

“We expect to launch it later this quarter.”

“I mean, at this point we believe that we will be the only generic in the marketplace.”

“Or we expect further increase in this number?”

“We do expect, in fact, the gross margins to kind of sustain at the current level.”

Vinita Gupta

38

Moderator

14

Nilesh Gupta

13

Kunal Dhamesha

10

Damayanti Kerai

8

Krishnendu Saha

8

Saion Mukherjee

8

Gagan Thareja

7

Surya Patra

5

Shyam Srinivasan

4

Vinita Gupta

Thank you. Good afternoon, folks. I am very pleased to welcome you to our Q1 FY24 earnings call. I have with me our MD Nilesh as well as our CFO Ramesh. We look forward to sharing our Q1 highlights and outlook for the fiscal year. We are very pleased to start the new fiscal year strong with continued momentum across our major regions, improving compliance position, multiple new product approvals and improvement in operating margins. Our India business is firmly back to double digit growth and the US business margin has continued to improve. We expect to see material improvement in the rest of this fiscal year as we launch Tiotropium and other new products in the US as well as our sales force expansion in India starts yielding expected productivity from Q2 onwards. Our India business recorded an 11.5% growth QoQ and 10.2% growth YOY and this is after the NLEM impact as well as CIDMUS brand that we had in the base last year. Cardiology and Respiratory TA’s grew better than market growth,

Vinita Gupta

credit loans in India and also retired some debt in Australia. With this, we could open the floor for discussions. Thank you very much, sir. We will now begin the question-and-answer session. Please raise your hands from the participant tab on the screen to ask questions. We will wait for 30 seconds for the queue to assemble. So, bear with us, please. So, the first question is from Damayanti Kerai. Please go ahead, ma'am. Yes. Hi, good afternoon. My first question is, can you update us on your launch plan for Spiriva in the U.S. in terms of preparation, and when you are going to launch it, and also your view on the market, specifically market shift which could possibly happen from Respimat to Handihaler. So that's my first question. Yes, so we are actively working towards a launch this quarter. We expect to launch it later this quarter. And well time will tell if we can really switch share back from Respimat to Spiriva. I mean, at this point we believe that we will be the only generic in th

Damayanti Kerai

Okay. And ma'am, earlier, I think you mentioned the addressable market size for you is around $1 billion? Or like what is the addressable market you'll be working for this launch?

Damayanti Kerai

But that includes both HandiHaler and Respimat, right? It's a total market, not only the HandiHaler part.

Damayanti Kerai

Okay. My second question is your other expense trend. So, Ramesh, obviously mentioned what has led to quarter-on-quarter increase, as well as year-on- year increase. But should we take the current quarter number as the base going ahead? Or we expect further increase in this number? And I'm asking specifically because you have been talking about cost saving goals, et cetera. So where we can see benefit of cost saving on say other operating expense or some other line item. Ramesh Swaminathan: Yes, so let me explain. We do expect, in fact, the gross margins to kind of sustain at the current level. So it is certainly going to be elevated, but you would also appreciate we've been talking about, in fact, a higher quantum of investments on the sales and promotion front, especially in India, and we've added about 1,300 people in Q3, Q4 of last year. So obviously, this will also be reflected in higher expenditure, on account of that, it will then commensurate increase in terms of the sales itself.

Damayanti Kerai

Ramesh Swaminathan: Yeah, so what we had said was perhaps in the fourth quarter, you could see an exit rate of over 18%. We're sticking to that, and we are confident of actually exceeding that.