Lupin Shocks Street with 59% Slide in Q1 Profit

The Economic Times - - Finance & Commodities - Our Bu­reau

Mumbai: Mumbai-based Lupin Pharma shocked the Street with a 59% drop in its net profit as GST adop­tion and quick price ero­sion of a key drug pulled down its Q1 num­bers. Lupin re­ported a net profit of ₹ 358 crore, com­pared with ₹ 882 crore last year in the same quar­ter. In­come from op­er­a­tions was at ₹ 3,869 crore against ₹ 4,467 crore, a 13% drop from the pre­vi­ous year. Lupin pro­mot­ers ad­mit­ted that the num­bers were be­low the com­pany’s own ex­pec­ta­tions, and go­ing for­ward, the fo­cus would be to- wards com­plex gener­ics. “Re­sults in the first quar­ter of FY18 have been be­low our own ex­pec­ta­tions on ac­count of higher-than-an­tic­i­pated price ero­sion in select prod­ucts such as Glumetza, dis­rup­tion on count of GST im­ple­men­ta­tion in In­dia and ap­pre­ci­a­tion in the ru­pee,” said Lupin Pharma man­ag­ing direc­tor Nilesh Gupta. Glumetza is an anti-di­a­betic drug and an­a­lysts had pre­dicted that with the en­try of com­pe­ti­tion, Lupin would be los­ing out its mar­ket share to new play­ers. Rev­enues from North Amer­ica, which con­trib­ute nearly 45% of the com­pany’s to­tal business, were at ₹ 1,602 crore com­pared with ₹ 19,00 crore a year ago.

Lupin’s In­dia for­mu­la­tion sales grew 6.1% to ₹ 9,324 mil­lion dur­ing the first quar­ter of FY18 com­pared with the fourth quar­ter of FY17 and de­creased 1.8% against the first quar­ter of FY17, ac­count­ing for 25% of Lupin’s global sales.

Ja­pan, which is one of the key mar­kets for the com­pany, has also seen a slow­down.

GST adop­tion and quick price ero­sion of a key drug pulled down Q1 with profit at 358 cr

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