Lupin dips as Q1 results miss Street estimates

The stock dipped 6% at Rs 1,714 after the company reported a 16% Y-o-Y drop in consolidated net profit at Rs 525 crore in the June quarter.

Shares of Lupin dipped 6% at Rs 1,714 on the NSE after the drug maker reported a 16% year-on-year (YoY) drop in consolidated net profit at Rs 525 crore for the quarter ended June 30, 2015 (Q1), due to lower sales. The company had posted a profit of Rs 625 crore in the same quarter a year ago.

Total operational income during the quarter under review declined 5.7% at Rs 3,150 crore on a Y-o-Y basis.

Analysts on an average had expected a profit of Rs 568 crore and net sales of Rs 3,301 crore for the quarter.

Operating profit margins stood at 26.6% in the June quarter against 33.9% in the previous year quarter, Lupin said in a statement.

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin said, “Slowdown in approvals in the US dampened growth during the quarter, even as the company continues to improve on gross margins. We remain focused on evolving our research pipeline, ensuring compliance, operational excellence and acquiring meaningful assets.”

Meanwhile, in the past three trading sessions, the stock tanked 13% from Rs 1,978 on July 20, compared to a marginal 0.09% rise in CNX Nifty.

At 02:39 PM, the stock was down 5% at Rs 1,739 on the NSE and has seen a combined 3.97 million shares changing hands on the counter on the NSE and BSE.