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Below is quote on Lupin Ltd Q2FY22 results by Mr. Yash Gupta, Equity Research Analyst, Angel One Ltd   

Lupin Limited reported the Q2FY22 numbers in line with market expectations.

Lupin Limited reported revenue from operation at ₹4,003 crores up by 5.9% YoY from ₹3781.8 crores in Q2FY21, Company reported Gross Margins at 59.4% down by 4.1% as compared to 63.5% in Q2FY22. Company reported EBITDA margins of 15.7% down by 30 bps and EBITDA at ₹628.5 crores up by 3.7% YoY. EBITDA of Q2FY22 got impacted by 80 bps due to the one-time cost of US Specialty restructuring of ₹32.6 crores. The company reported a net loss of ₹2094.9 crores as compared to a net profit of ₹213.1 crores in Q2FY21. Net loss includes business compensation expense of ₹1876 crores and impairment expense of ₹707.7 crores.
Numbers are in line with market expectation, gross margins are back to pre covid levels, we expect some pressure on gross margins to continue in next quarter also due to higher raw material prices. We have a neutral outlook on Lupin Limited.

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