1 min read.Updated: 29 May 2020, 10:28 AM ISTLeroy Leo
Lupin had in November announced the sale of 99.82% stake in its Japanese subsidiary Kyowa Pharmaceutical Industry Co Ltd for an enterprise value of 57.4 billion yen
NEW DELHI: Lupin Ltd reported a 35% year-on-year jump in its January-March (Q4) consolidated net profit to ₹389.6 crore on account of a one-time gain accrued from the divestment of its stake in Japanese firm Kyowa Pharmaceuticals even as the company’s operational performance was hit by a fall in sales in US and Asia Pacific markets.
The Mumbai-based drug-maker had in November announced the sale of entire 99.82% stake in its Japanese subsidiary Kyowa Pharmaceutical Industry Co Ltd for an enterprise value of 57.4 billion yen to Plutus Ltd, a firm owned by Japanese private equity firm Unison.
While most of the profit from the sale was accounted for in the December quarter, about ₹121 crore million was accounted for in the January-March quarter. However, this was offset by a loss of ₹284 in the divestment of another Japanese firm Kyowa Criticare as well as ₹9.6 crore worth of impairment, according to a company statement.
Lupin’s sales in the Indian market rose 13.3% to ₹1,192 crore in Q4, while that in the North American market declined 9.3% to ₹1,579 crore. Asia Pacific sales were also down 15.5% at ₹144.7 crores.
Latin American and rest of the world also reported a fall in sales and as a result Lupin’s consolidated sales were down 0.4% at ₹3,791 crore in the quarter under review.
Weak sales also led to a contraction in the company’s operating margin to 19.4% from 22.4% in the corresponding period last year.
However, despite the weak operational performance Lupin managing director Nilesh Gupta had a positive outlook for quarterly sales.
“We have had strong momentum in our two major markets, the US and India, and on compliance across our facilities. Importantly, in the current times, we have been able to ensure business continuity while safeguarding the health and safety of our employees," Gupta said.