NEW DELHI: Lupin posted a 59% slump in its consolidated net profit year-on-year for the April-June quarter at ₹108.2 crore as the covid-19 pandemic and the lockdowns imposed to curb it dragged sales of its medicines in India and US.
The company’s consolidated revenue from operations were down 9% at ₹3,529 crore, with operating margins contracting 530 basis points (bps) to 14.7% in the quarter. However, the margins were up 90 bps on a quarter-on-quarter basis.
“The quarter’s performance was impacted by the covid-19 pandemic and related lockdowns, affecting our key businesses in India and US," Lupin managing director Nilesh Gupta said in a statement.
“Despite the challenges impacting revenues, we improved margins driven by tight expense control. We expect to continue the momentum on margin improvement."
The pharmaceutical industry, like many other industries, has seen a severe disruption in its operations globally due to the covid-19 pandemic and lockdowns meant to curb it as visits to hospital out-patient departments and doctor’s clinics fell and elective surgeries were postponed.
All regions that Lupin operates in witnessed a decline in sales, with its two largest markets, the US and India, seeing a 21% slump and 1.7% decline respectively at ₹1,216 crore and ₹1,285 crore. The Rest of the World market saw a 46% slump in sales at ₹38 crore.
The only positive performance was in its active pharmaceutical ingredients business, which witnessed a 17% growth in sales at ₹409 crore. Formulation manufacturers globally have been looking to derisk supply of APIs, which are key raw materials for medicines, after the covid-19 lockdown in China in February and March had severely disrupted shipments. For Indian pharmaceutical industry, which is the world’s largest formulation supplier, there was a second, albeit minor, disruption in June due to diplomatic tensions on the India-China border.
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