Lupin Q2 profit seen down 39% at Rs 404 cr, US business may decline 26%

Pharma major Lupin is expected to report a 39 percent degrowth year-on-year in consolidated profit at Rs 404 crore for quarter ended September 2017, dented by US business.

Profit in July-September quarter 2016 stood at Rs 662.2 crore.

Higher base in Q2FY17 and lower operational performance may weigh on bottomline.

Revenue during the quarter is seen falling 7.1 percent year-on-year to Rs 3,984 crore, according to average of estimates of analysts polled by CNBC-TV18.

EBITDA (earnings before interest, tax, depreciation and amortisation) may fall 23 percent year-on-year to Rs 791 croe and margin may contract 414 basis points to 19.86 percent in Q2.

Expectations:-
-US business could decline by upto 26 percent YoY versus decline of 26 percent in Q1FY18 YoY
-India could grow from 5 percent to even 15 percent versus decline of 2 percent in Q1 YoY, post GST
-Lupin had said FY18 would be a year of consolidation; hence expectations are low on numbers
-US markets continue to remain weak due to price pressure, channel consolidation, competition
-Higher competition in its key diabetes drugs (Fortamet and Glumetza generic) continued since December 2016-Japan could be impacted by lower offtake in hospitals