Lupin Q1 net profit dips by 16% at Rs 525.02 cr, falling overseas sales hit margins

New Delhi: Drug firm Lupin today reported a 15.96 percent dip in its consolidated net profit at Rs 525.02 crore for the quarter ended 30 June, mainly on account of decline in its overseas sales. The company had posted a net profit after taxes and minority interest of Rs 624.74 crore for the corresponding period of the previous fiscal, Lupin said in a filing to BSE.[caption id=“attachment_2359544” align=“alignleft” width=“380”]  Falling profits. Reuters[/caption] Consolidated total income from operations also witnessed a decline to Rs 3,150.23 crore during the quarter under consideration as against Rs 3,340.82 crore for the same period, a year ago. Commenting on the results, Lupin Ltd managing director Nilesh Gupta said: “Slowdown in approvals in the US dampened growth during the quarter, even as the company continues to improve on gross margins.” The company remains focused on evolving its research pipeline, ensuring compliance, operational excellence and acquiring meaningful assets, he said. The company’s revenue within India rose to Rs 993.56 crore for the quarter under consideration from Rs 865.11 crore during the year ago period. The revenue from its operations outside India declined to Rs 2,156.67 crore during the quarter as against Rs 2,475.71 crore in the corresponding period of the previous fiscal, Lupin said. “The India formulations business grew by 16 percent, recording sales of Rs 885.1 crore for Q1 FY2016 as compared to Rs 761.5 crore for Q1 FY2015,” it said. During the quarter, the board of directors have resolved to seek the approval of the shareholders at the ensuing AGM to raise additional funds for an amount not exceeding Rs 7,500 crore or an equal amount in foreign currency … to pursue growth opportunities, as also increasing the authorised capital of the company by Rs 100 crore, Lupin said. During the quarter the company filed five Abbreviated New Drug Applications (ANDAs) and received six approvals from the USFDA. Cumulative ANDA filings with the USFDA stood at 215, as on 30 June 2015 with the company having received 117 approvals to date, Lupin said. Shares of Lupin today closed at Rs 1,727.80 per scrip in the afternoon trade on BSE, down 4.90 percent from its previous close. PTI