Lupin Shocks Street with 59% Slide in Q1 Profit
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