Lupin June quarter net drops 16%

Impacted by lower revenue from the US market, drug maker Lupin on Thursday reported a 16 per cent year-on-year  drop in its consolidated net profit for the quarter ended June. Stock price tanked over five per cent to close at Rs 1,728.60 as Lupin’s numbers came below Street expectations, while the market perceived its GAVIS acquisition as expensive.

Net profit stood at Rs 525 crore against Rs 624.7 crore last year and came lower than Bloomberg consensus estimate of Rs 587 crore. Consolidated net sales dropped over six per cent to Rs 3,074 crore, much lower than an estimated of Rs 3,352 crore, largely impacted by a 26 per cent drop in sales from the US market. In Q1, nearly 39 per cent of the revenue came from US.  

The domestic market revenue grew to Rs 993.56 crore from Rs 865.11 crore a year ago. On operating front, earnings before interest, tax, depreciation and amortisation at Rs 892.2 crore declined 22 per cent year-on-year.

“Slowdown in approvals in the US dampened growth during the quarter, even as the company continues to improve on gross margins”, said Nilesh Gupta, managing director.
 

During the quarter, the board of directors has resolved to seek the approval of the shareholders to raise additional funds for an amount not exceeding Rs 7,500 crore or an equal amount in foreign currency ... to pursue growth opportunities, as also increasing the authorised capital of the company by Rs 100 crore, Lupin said.