Lupin extends decline post Q4 results

The stock dipped 6% to Rs 1,588, extending its previous day's 3% losses on the NSE.

Shares of Lupin have dipped 6% to Rs 1,588, extending the previous day’s 3% decline on the NSE, after the drug maker reported a lower-than-expected net profit for the quarter ended March 2015 (Q4).

Lupin had reported a 1% year-on-year (yoy) decline in net profit at Rs 547 crore for the January-March quarter as revenue from its US business declined. The company had reported Rs 553 crore in the corresponding quarter of the last financial year. The revenues remained flat at Rs 3,054 crore compared to Rs 3,051 crore yoy.

“Lupin posted a flat growth with the key geographies like US, Europe, Indian and Japan posting a dip of 6%, a growth of 9%, a 15% growth and a dip of 9% respectively. EBITDA or operating profit margin dipped by 142 basis points to end the period at 25.1% V/s expected 26.3%,” Angel Broking said in a client note.

Analysts maintain neutral rating on the stock.

Meanwhile, Lupin announced the acquisition of Brazil's Medquimica Industria Farmaceutica SA, marking its foray into the Latin American nation.

Angel Broking said the acquisition marks the company's foray into the high-growth Brazilian market and would also shore up its position n the Latin American pharmaceuticals market, given its acquisition of Laboratorios Grin in Mexico.

At 0955 hours, the stock was down 4.5% at Rs 1,613 on the NSE.