Lupin Q1FY18 : Price erosion and rupee appreciation impacted on revenue

Lupin Ltd. reported its results for the quarter ended June 30, 2017 today.

Total sales for this quarter, Q1FY18, came in at Rs. 3869.5 crore. This represents a 9.02 per cent sequential decline and 13.39 per cent YoY decline.

Revenue mix, North America 42 per cent of revenue followed by India which accounted 25 per cent of revenue.

Operating profit (EBIT) for the recently concluded quarter amounted to Rs. 507.8 crore and the EBIT margin stood at 13.12 per cent.

In terms of the bottom-line, the company reported a PAT figure of Rs. 358 crore which represents a sequential QoQ decline of 5.84 per cent and a YoY decline of 59.41 per cent.

During the quarter, the company invested Rs. 500 crore in research. Further, the company launched 4 products in the US market during the quarter. The Company now has 142 products in the US generics market. Lupin is now the market leader in 43 products in the US generic market.

While commenting on the result management said, “Our Q1, FY2018 results have been below our own expectations on count of higher than anticipated price erosion in select products like Glumetza, disruption on count of GST implementation in India and appreciation in the rupee”.

Lupin is an innovation led transnational pharmaceutical company developing and delivering a wide range of branded & generic formulations, biotechnology products and APIs globally. The company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, anti-infective and NSAID space and holds global leadership position in the anti-TB segment.