Lupin Q4 profit halves to Rs380 crore as US sales slump
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Mumbai: Drug maker Lupin Ltd’s consolidated net profit in the Mach quarter fell 49% from a year ago to Rs380.21crore, missing analysts’ estimates by a wide margin.
The company reported a revenue of Rs4,161.88 crore during the quarter, against Rs4,108.98 crore a year ago. A Bloomberg poll of 26 analysts had estimated the company’s net profit at Rs642.90 crore and net sales at Rs4,369 crore.
In a knee-jerk reaction, investors sold Lupin shares, driving them down 6.5% to Rs1,168.10 on the BSE, a level last seen on 14 August 2016. The shares recouped later after the market noted the decline in profit was mainly due to a certain legal provision and a foreign exchange loss.
The stock ended at Rs1,235.15 on Wednesday, down 1.1% from its previous close, while the benchmark Sensex index fell 0.2% 30301.64 points.
Lupin recorded a provision of Rs155.9 crore for its Australian subsidiary’s liability relating to patent litigation for a generic product, and foreign exchange loss of Rs168 crore.
It spent more on research and development (R&D) and posted weak sales in the US.
Earnings before interest, tax, depreciation and amortization (Ebitda) fell to Rs826.7 crore in the March quarter, against Rs1,349.7 crore a year ago.
Sales in the US, its biggest market, declined 15.1% to $276 million on last year’s high base which included contribution from Glumetza generic sales under a six-month marketing exclusivity period.
Sales in the domestic market rose 13.8% to Rs878.8 crore during the quarter. Sales in Asia Pacific region and Latin America were up 35% and 37.3%, respectively. Reuters