Lupin Q2 sales down 8%, PAT falls 31.3%

Pharma major Lupin reported an 8% fall in Q2 revenue to Rs. 3,952 cr.

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter fell by 13% to 927 cr.

Net profit was also down by 31.3% at Rs 455 cr in in the September quarter. The profit was higher than the mean analyst estimate of Rs 433 cr.

Investment in Research for the quarter was Rs 474 cr, 12.2% of sales, it said.

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited, said “In Q2 we have recorded strong growth in all our markets but for the US generic business where we continue to see pricing pressure, as expected. The EBIDTA growth was further fueled by our optimization efforts around operations and R&D investment. We are on track with our complex generic pipeline and have made significant progress on the speciality front with the acquisition of Symbiomix in the US.”

Material cost increased by 80 bps to 33.2% of sales, at Rs. 12,865 m, while personnel cost decreased by 20 bps to 18.7% of sales at Rs. 7,250 m.

Manufacturing and other expenses decreased by 210 bps to 28.1% of sales at Rs. 10,874 m. Operating working capital increased to Rs. 57,139 m. as on September 30, 2017 compared to Rs. 54,068 m. as on June 30, 2017.


North America sales fell to USD 204 m. compared to USD 238 m, while India formulation sales grew by 16.4% to Rs. 11,593 m. from last year.

Lupin’s APAC sales grew by 15.2% to Rs. 6,357 m, accounting for 16% of Lupin’s global sales.

Lupin’s Japan sales increased by 29.6% to JPY 8,685 m.

EMEA sales grew by 17.1% to Rs. 2,758 m; accounting for 7% of Lupin’s global sales.