Q4 Results: Lupin’s Profit Misses Estimates But Margin Improves

Lupin Ltd.’s quarterly profit missed estimates even as its operating income and margin improved.

The drugmaker reported a net profit of Rs 289 crore in the three months ended March against a loss of Rs 783 crore a year earlier, according to its exchange filing. That compares with a Bloomberg consensus estimate of Rs 428-crore profit. The company had reported an exceptional loss of Rs 1,464 crore in the base quarter.

Lupin’s revenue rose 9 percent year-on-year to Rs 4,406 crore in quarter ended March, in line with analysts’ estimate of Rs 4,437 crore.

Its earnings before interest, taxes, depreciation and amortisation rose 23 percent to Rs 872 crore, meeting the Rs 853-crore estimate. Margin expanded by 220 basis points to 19.8 percent—the analysts had forecast 19.2 percent. The company announced an interim dividend of Rs 5 per share.

“It don’t see it as a significant beat on operating margins,” said Kunal Dhamesha, research analyst at SBICAP Securities. “The higher profitability level is largely driven by Ranexa drug exclusivity, which started in February this year and will continue till May.”

Shares of the drugmaker fell as much 5.2 percent after the earnings announcement compared to a 0.10 percent gain in the Nifty Index.

The Mumbai-based company is facing scrutiny from the U.S. Food and Drug Administration. Earlier this month, the FDA classified its Pithampur plant as “official action indicated”. It’s the third facility to receive this classification—which means it might not get new approvals until the issues raised are resolved.