Against an expectation of a profit of around Rs300 crore, Lupin Ltd reported a loss of Rs783.5 crore for the March quarter. While there was a knee-jerk reaction that dragged the Lupin stock to a 52-week low, it quickly recovered when investors realized the core operating performance was fine.

The loss was primarily due to the impairment provision the company took on the intangible assets of the Gavis group acquisition. This is not entirely surprising, given the changed market conditions for opioids in the US and diminished revenue expectations from the business. It’s just that analysts hadn’t factored in this write-off in their estimates.