Lupin slips 5% as Q1 profit misses Street's estimate

The stock slipped 5% to Rs 821 on the BSE after the company reported 43% year-on-year drop in consolidated net profit at Rs 2.03 billion June quarter, hit by fall in sales in the US and Japan.

SI Reporter  |  Mumbai 

Shares of have slipped 5% to Rs 821 per share on the in intra-day trade after the company reported 43% year-on-year drop in consolidated net profit of Rs 2.03 billion in June quarter (Q1FY19), hit by fall in sales in the US and Japan. The pharmaceutical company had profit of Rs 3.58 billion in year ago quarter.

Sales during the quarter declined 0.84% at Rs 37.75 billion compared to Rs 38.07 billion in Q1FY18. The company said its North America sales declined by 26% to Rs 11.86 billion during Q1FY19 compared to Rs 16.02 billion during Q1FY18.

The EBITDA (earnings before interest, tax, depreciation and amortization) margin decreased 220 bps to 18.8% from 21% in previous year quarter.

Analysts on an average had expected a profit of Rs 3.77 billion on sales of Rs 41.79 billion for the quarter.

“The first quarter of FY2019 has been subdued, primarily on account of the US and Japan,” said Nilesh Gupta, Managing Director,

“We have made meaningful progress in building our Complex Generics and Specialty business with the launch of Solosec in the US and our successful partnership to commercialize biosimilar Etanercept with Nichi-Iko for Japan and Mylan for Europe and other We remain committed to accelerating new product introductions, evolving our business and delivering on operational and cost efficiencies,” added Nilesh Gupta.

Meanwhile, the company said plans on warning letter resolution on track. In November 2017, the US Food and Drug Administration (USFDA) had issued a warning letter to for violation of current good manufacturing practice norms at two of its manufacturing facilities in Goa and Indore.

At 03:00 pm; Lupin was trading 4% lower at Rs 832 on the BSE, as compared to 0.42% rise in the S&P Sensex. The trading volumes on the counter jumped more than three-fold with a combined 12.98 million shares changed hands on the and so far.


First Published: Wed, August 08 2018. 15:04 IST