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Slowdown in product approvals bring Lupin Q2 net down 35%

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New Delhi: Drug major Lupin on Tuesday posted a 35.11% dip in its consolidated net profit at Rs 408.8 crore for the second quarter ended September 30, mainly on account of slowdown in product approvals in the US.

The company had posted a net profit of Rs 630 crore during the same period of the previous fiscal.

Net sales of the company, however, rose to Rs 3,178.3 crore during the second quarter compared with Rs 3,116.8 crore during the same period of previous fiscal, Lupin said in a statement.

“Slowdown in approvals in the US and a lack of material launches continued to dampen growth. We continue to invest in research and remain upbeat on the pace of approvals and launches to pick up by the fourth quarter,” Lupin Ltd Managing Director Nilesh Gupta said.

The company’s board, which met on Tuesday, appointed Ramesh Swaminathan Chief Financial Officer as an additional director and Jean-Luc Belingard as an independent director of the company for a period of five years effective October 27, subject to shareholders approval.

The company said its US sales stood at $174 million during the second quarter as against $202 million in second quarter of the previous fiscal.

During the second quarter, its India formulations business grew by 9.4%, recording sales of Rs 873.8 crore during the second quarter as against Rs 799 crore during the same period of 2014-15.

Lupin’s Japanese business posted net sales of Rs 323.4 crore during the second quarter, as against Rs 345.9 crore in the same period of previous fiscal.

The company’s South African subsidiary, Pharma Dynamics achieved sales of Rs 99.8 crore in second quarter compared with Rs 105.7 crore last year.

The Mumbai-based firm’s active pharmaceutical ingredients (API) sales grew by 1.1% to Rs 321.9 crore during the second quarter as against Rs 318.3 crore during the same period of 2014-15.

Lupin’s shares were trading at Rs 1,942 on BSE in late afternoon trade, down 5.43% from previous close.

PTI