Lupin Q3 Profit Falls 65%, Misses Estimates

Lupin said its sales in North America, which accounts for more than a third of its total sales, fell 34% to Rs 1,432 crore.

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Lupin Q3 Profit Falls 65%, Misses Estimates

Lupin said its profit was hit by a foreign exchange loss of Rs 82.1 crore.


Lupin Ltd, India's second-largest drugmaker by revenue, on Tuesday reported lower-than-expected third-quarter net profit, hurt by lower sales in North America and foreign exchange losses.

Domestic pharmaceutical companies have struggled with weak sales in the United States on account of regulatory bans and warnings over quality control violations at production plants.

Sales have also been hit by pricing pressures on account of rising competition in the generics market in the US.

Lupin said its sales in North America, which accounts for more than a third of its total sales, fell 34 per cent to Rs 1,432 crore ($223.29 million). Net sales slipped 11.5 per cent to Rs 3,900 crore.

"The quarterly performance was muted on the back of business mix as well as forex losses," said Nilesh Gupta, managing director.

Profit fell 65 per cent to Rs 222 crore for the quarter ended December 31, well below an average analysts' estimate of Rs 421 crore, Thomson Reuters data showed. (http://bit.ly/2E47T4m)

Lupin said its profit was hit by a foreign exchange loss of Rs 82.1 crore compared to a gain of Rs 27 crore a year earlier.

The company also incurred a charge of Rs 36.1 crore as a result of recalculating deferred tax assets related to its United States operations due to the introduction of a new tax regime.
© Thomson Reuters 2018


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