Lupin Q2 Results: Posts Loss On One-Off Items
Lupin incurred a net loss of Rs 2,094.9 crore in the July-September period against a Rs 548.2-crore profit in April-June.
Lupin Ltd. reported a loss in the second quarter on account of one-off items and a high base.
The drugmaker incurred a net loss of Rs 2,094.9 crore in the July-September period against a profit of Rs 548.2 crore in the preceding three months, according to its exchange filing late on Wednesday. A consensus of analyst estimates compiled by Bloomberg had pegged the profit at Rs 306.5 crore.
Key Highlights (QoQ)
Revenue fell 4% to Rs 4,091.3 crore, against the Rs 4,013.4-crore forecast.
Net operating loss stood at Rs 1,315.8 crore compared with a Rs 927.6-crore operating profit in Q1. The estimated earnings before interest, tax, depreciation and amortisation was Rs 649.3 crore.
During the quarter, Lupin had agreed to settle a dispute with respect to antitrust class actions filed in the Northern District of California, U.S., in connection with a diabetes drug Glumetza to avoid uncertainties and additional costs of protracted litigation. The company booked a provision of Rs 1,879.6 crore toward business compensation expense, the filing said.
It also recognised an impairment charge of Rs 707.7 crore toward an acquired Solosec IP (used to treat a certain type of vaginal infection) due to adverse market conditions.
Further, in the quarter ended June, Lupin had received a one-time payment of Rs 373.4 crore from Boehringer Ingelheim.
Adjusting for the one-offs, the company’s sales rose 3.6% and Ebidta 1.5% over the previous quarter. Profit before tax for the reported quarter would be Rs 382.5 crore, 1.5% higher than the adjusted earnings in the preceding three months.
Other Highlights (QoQ)
India sales contracted 5.7% to Rs 1,543.5 crore, contributing 38% to total sales.
U.S. business grew 7.2% to Rs 1,429.1 crore, comprising 36% of total revenue.
Lupin’s Europe, Middle-East and Africa sales saw a 33.3% rise, contributing 9% of the total revenue.
Bulk drugs business grew 8.9%.
Growth markets (Latin America and APAC) and the rest of the world also grew.
According to Nilesh Gupta, managing director at Lupin, the company remains focused on ramping up its revenue in the U.S., while continuing robust growth in India. With a restructuring in the U.S., it has significantly scaled down the specialty burn. The drugmaker, he said in the filing, is committed to margin improvement through sustainable growth and cost optimisation.
Half-Yearly Highlights
After-tax losses stood at Rs 1,546.7 crore against a profit of Rs 322.2 crore.
Revenue was up 14% to Rs 8,361.5 crore.
*These are inclusive of all one-time events.
Shares of Lupin had closed 0.55% higher before the results were announced compared with a 0.31% decline in the benchmark Nifty 50.