Drugmaker Lupin posted a net profit of ₹221 crore for the third quarter ended December 31, 2017, down 65 per cent from ₹633 crore in the corresponding period last year, a performance that was described by its management as the worst in several years.
Lupin Vice-Chairman KK Sharma said that the company’s performance was muted and likely to stay that way due to challenges in different markets, including pricing pressure in the US and Japan. Though the situation was settling down in the US, getting back to the peak situation will take time, he said. The corporate tax in the US and forex loss on account of rupee appreciation had impacted the company, he told mediapersons over a call to discuss the company’s performance.
Lupin’s sales for the three months ended December 2017 stood at ₹3,900 crore down 11.5 per cent from ₹4,404 crore in the same period last year. The company’s net profit for the quarter included a hit of ₹36 crore on account of remeasurement of deferred tax assets/liabilities pertaining to US operations based on enactment of the new tax regime, the company said. Its investment on research for the quarter stood at ₹475 crore, representing 12.2 per cent of sales.
“The quarterly performance was muted on the back of business mix as well as forex losses. We continue to grow strong in all our markets while the US business is now starting to stabilise at the current level,” said Managing Director Nilesh Gupta.
Giving details on the US market, Vinita Gupta, CEO, said they expected to launch about 10 products in the present quarter.
Lupin’s North America sales was down 34 per cent at ₹1,432 crore during the period under review against ₹2,175 crore during the corresponding period last year. The region accounts for 37 per cent of Lupin’s global sales. It’s India finished drug sales increased by 7.8 per cent to ₹1,068 crore during the review period against ₹991 crore in the same period last year. India accounts for 27 per cent of Lupin’s global revenue.