Lupin's net profit dips 16 percent in Q1

Pharmaceuticals company Lupin Ltd on Thursday said its net profit during this financial year's first quarter declined by 16 percent to Rs.5,250 million as against Rs.6,247 million in the same period last year.

Net sales were clocked at Rs.30,743 million in the quarter under review as compared to Rs. 32,840 million during the year-ago period.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) declined by 22 percent at Rs.8,922 million in the quarter as against Rs.11,437 million during the corresponding three months last year.

"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," company managing director Nilesh Gupta said in a statement.

The medicinal drugs manufacturer highlighted a reduction in material cost but also noted that however, higher manufacturing and other expenses alongwith personnel cost had pulled up its cost.

"Manufacturing and other expenses increased by 6.5 percent to 28.1 percent of net sales at Rs. 8,642 million during the first quarter of fiscal year 2016 as compared to Rs. 7,083 million during first quarter of the last fiscal year," the company said.

The India formulations business grew by 16 percent, recording sales of Rs.8,851 million for the review quarter as compared to Rs.7,615 million in the year-ago period. US and Europe formulation sales stood at Rs. 12,762 million contributing 42 percent to overall sales.

Japan accounted for the third largest business clocking net sales of Rs.3,231 million from April to June this year as compared to Rs. 3,415 million during the same months in 2014.