Lupin’s (LPC’s) FY22 annual report (AR) shows i) US losses mounting to ~Rs 16.5 bn; ii) Ebitda margin at multi-year lows despite positive trends in opex control as US pressure and sub-par India hit gross margin; iii) Key managerial personnel (KMP) salary growth ahead of PBT and median employee. LPC is focused on 20% Ebitda margins in the near future. Management admits that capital allocation strategy had gone amiss, resulting in sub-par RoCEs of 8.5%. Focus is on improving execution, reducing specialty burn, rationalising costs and moving up the value chain. While we see some positive trends emerging in cost …
