Lupin's Q1 India sales dip, shares tank 6 %

The company had posted a profit of Rs 280.4 crore during same period in previous fiscal

Mumbai-based Lupin has posted a 43% increase in consolidated net profit to Rs 401 crore for the first quarter ended June 30 after a better sales growth in the US market. The company had posted a profit of Rs 280.4 crore during the same period in the previous fiscal.

However, sales from India has decreased by 5% at Rs 589 crore from Rs 612 crore. India formulations business contributed 24% of the company's overall revenues.

Fall in India sales has made a negqtive impact on company stock as shares of Lupin went down at Rs 827, by 6.50% on BSE.

 

Lupin's US and Europe formulation sales grew 29% to Rs 1,099 crore in the first quarter from Rs 849.7 crore a year earlier, contributing 46% to sales. Lupin's brands business in the US contributed 11% of US sales, while generics accounted for 89%.

Net sales rose 9.07% to Rs 2,420.7 crore from Rs 2,219.2 crore in the quarter a year earlier.

"We have had a good quarter fuelled by strong business performance in the US as well as improved operational efficiencies that have led to stronger margins," Lupin Managing Director Kamal K Sharma said in a statement.

During the quarter, sales from its Japanese subsidiary Kyowa increased to JPY 5,151 million ($52 mn or Rs 324 crore), up from JPY 4,921 million ($42 mn or Rs 309 crore ) in the same period of the previous fiscal.