Lupin down over 5%, mcap dips by Rs 4,836 cr as Q2 disappoints

Shares of drug major Lupin today plunged over 5 per cent, wiping out Rs 4,836 crore from its market valuation, after the company posted a 35.11 per cent slump in consolidated net profit for the quarter ended September 30.
The stock dipped 5.25 per cent to settle at Rs 1,945.65 on BSE. Intra-day, it lost 5.86 per cent to Rs 1,932.90.
At NSE, shares of the company slipped 5.16 per cent to close at Rs 1,945.65.
The company's market valuation tanked by Rs 4,835.71 crore to Rs 87,604.29 crore.
The stock was the worst performer among the blue-chips on both Sensex and Nifty.

"For Q2 FY16, the company posted bad set of numbers, with OPMs coming in lower-than-expected, consequently net profit," said Sarabjit Kour Nangra (VP Research - Pharma), Angel Broking.

Lupin today posted a 35.11 per cent dip in consolidated net profit at Rs 408.8 crore for the second quarter ended September 30, mainly on account of slowdown in product approvals in the US.
The company had posted a net profit of Rs 630 crore during the same period of the previous fiscal.
Net sales of the company, however, rose to Rs 3,178.3 crore during the second quarter compared with Rs 3,116.8 crore during the same period of the previous fiscal, Lupin said in a statement.

"Slowdown in approvals in the US and a lack of material launches continued to dampen growth. We continue to invest in research and remain upbeat on the pace of approvals and launches to pick up by the fourth quarter," Lupin Ltd Managing Director Nilesh Gupta said.
The company said its US sales stood at USD 174 million during the second quarter as against USD 202 million in second quarter of the previous fiscal.