Lupin Q2 results

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

• 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. Bloomberg