Lupin net profit slumps 43% to Rs 202.8 cr in Q1

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Mumbai, Aug 8: Drug maker Lupin reported a 43 percent year-on-year decline in net profit to Rs 202.8 crore in the June quarter. PAT was much below analysts’ estimates on a subdued US and Japan business.
The company posted a net profit of Rs 358.1 crore during the same period last year. A Reuters poll of analysts estimated net profit at Rs 347.6 crore in the first quarter on a revenue of Rs 4,084.8 crore.
Total income rose 3.6 percent to Rs 4,040 crore in Q1 FY19.
While the street was estimating earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 20 percent, the company disappointed at 18.8 percent.
“The first quarter of FY2019 has been subdued, primarily on account of the US and Japan,” said Nilesh Gupta, Managing Director of Lupin.
“We remain committed to accelerating new product introductions, evolving our business and delivering on operational and cost efficiencies.” Gupta added.
North America which is largely US business constitutes 31 percent of Lupin’s business saw sales dropping 26 percent on YoY basis to Rs 1185.8 crore in Q1FY19. On sequential basis too sales dropped 21 percent.
The company said it had launched 3 products in the US market during the quarter. The company now has 160 products in the US generics market
Lupin has been struggling in US with lack of significant approvals and competition to its key products Methergine, used in treatment postpartum hemorrhage and metformin franchise Glumetza and Fortamet.