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Lupin Q4 margins show improvement on lower R&D spend but growth seems priced in

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MUMBAI: Lupin Ltd managed a decent performance in the fourth quarter, with revenues just about in sync with analysts expectations but its gross margin was not quite what the Street was looking forward to.

This drove its shares down about 2% in Friday's trade. Its US revenues were healthy, growing 14.7% sequentially. Some of this can be attributed to stocking up in the US which not only perked up sales in the geography but pushed up the proportion to about 42% of total revenue.

Most of the growth in Q4 last year stemmed from a one-time sale of products. At home, the company outpaced the Indian market’s growth rate thanks to secular growth tailwinds deepening the penetration of drugs in the country.

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