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Lupin Q4 net loss at Rs 783 cr due to one time write-off

Press Trust of India  |  New Delhi 

Drug major today reported a consolidated net loss of Rs 783.54 crore for the March quarter, hit by one time impairment charge on the acquisition.

The company, which had reported a net profit of Rs 380.21 crore for the same period of 2016-17, said the company's results were also impacted by other liabilities related to the US operations.

Total revenue from operations stood at Rs 4,033.83 crore in the quarter, as against Rs 4,253.30 crore in the year-ago period, said in a regulatory filing.

For the entire 2017-18, the company posted a net profit of Rs 251.26 crore, down 90.17 per cent from Rs 2,557.46 crore in the previous year.

Total revenue from operations declined to Rs 16,804.15 crore, as compared with Rs 17,494.33 crore in 2016-17.

The Mumbai-based company said during the reported quarter, it made impairment provision of Rs 1,464.4 crore on certain intangible assets acquired as part of the group acquisition (Gavis).

had acquired US-based in July 2015 for USD 880 million to enhance the company's scale in the US generic market and also broaden its pipeline in dermatology, controlled and other high-value and niche generics.

Besides, the net profit also includes negative impact of Rs 76.6 crore for 2017-18 on account of re-measurement of deferred tax assets / liabilities pertaining to US operations based on enactment of the new tax regime in the US, Lupin said.

"We took a one-time impairment on the Gavis acquisition in line with the changed market conditions, in particular with the opioids in the US," Lupin said.

The company's near-term priorities are resolution of the warning letter on and units, successful commercialisation of Solosec in the US and executing on meaningful product launches, he added.

The company said it is on track to resolve issues related to and plants.

During 2017-18, the company's sales declined 28.7 per cent to Rs 5,893.9 crore as compared with Rs 8,262.7 crore in 2016-17. Lupin's domestic sales during the year however increased 10.7 per cent to Rs 4,125.3 crore as compared with 2016-17.

Its global (API) business declined 1.6 per cent to Rs 1,093.1 crore as compared with 2016-17, accounting for 7 per cent of company's global sales.

The company's board today recommended a dividend of Rs 5 per equity share of face value of Rs 2 each aggregating to Rs 226.05 crore.

Lupin shares today ended 0.46 per cent down at Rs 750.85 per scrip on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, May 15 2018. 18:00 IST