Lupin: Weak show

The stock of Lupin dropped by over 9 per cent last Thursday, after the company reported a year- on-year decline of 49 per cent in its net profit in the March 2017 quarter. The company reported a consolidated net profit of ₹380 crore as against ₹748 crore in the same period last year.

This steep fall is attributable to base business erosion in the key US geography and one-time provisioning on account of patent litigation over generic oral contraceptive drug in Australia.

Higher foreign exchange volatility also impacted earnings.

The consolidated net sales for the quarter increased by 1.3 per cent y-o-y to ₹4,162 crore. Lupin’s operating profit during the March quarter fell 39 per cent y-o-y to ₹827 crore. The company’s sales from the US registered a 15 per cent y-o-y fall while India, Japan and Europe recorded good performance, growing by 14, 35 and 23 per cent respectively.

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