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Lupin share closes 2.34% lower after firm reports Rs 151.75-crore loss in Q3

The Lupin earnings came below street expectations. The Mumbai-based firm reported a net profit of Rs 221.73 crore in the October-December period of previous fiscal. The Lupin share price fell 3.68% to 811 level intra day compared to the previous close of 841.95 on the BSE.

twitter-logoBusinessToday.In | February 7, 2019 | Updated 15:56 IST
Lupin share closes 2.34% lower after firm reports Rs 151.75-crore loss in Q3
The Lupin share price fell 3.68% to 811 level intra day compared to the previous close of 841.95 on the BSE.

The Lupin share price fell in trade today after the pharma firm posted a loss of Rs 151.75 crore for December quarter 2018, on account of one-time provisioning of Rs 342.22 crore related to a litigation over blood pressure lowering drug Perindopril in Europe. The Lupin earnings came below street expectations. The Mumbai-based firm reported a net profit of Rs 221.73 crore in the October-December period of previous fiscal. The Lupin share price fell 3.68% to 811 level intra day compared to the previous close of 841.95 on the BSE. The Lupin share closed 2.34%  or 19.70 points lower at 822.25 level on the BSE.

The Lupin share price has risen 1.98% during the last one year and lost 2.56% since the beginning of this year.  The Lupin share is trading below its 50-day and 200-day moving averages of 849.62  and 865.45 levels, respectively.

9 of 37 brokerages rate the stock "buy" or 'outperform', nine "hold", 14 "underperform" and five "sell", according to analysts' recommendations tracked by Reuters.

Income from operations rose to Rs 4,377.94 crore in the period under review as compared with Rs 3,900.36 crore in the year-ago quarter, Lupin said.

On December 12, 2018, the General Court of the European Union delivered its judgment concerning Lupin's appeal against the European Commission's 2014 decision in a litigation related to Perindopril.

The General Court upheld the EC's decision holding Lupin liable to pay a fine of 40 million euros.

"Considering that the matter was not settled in favour of the company, provision of 42.8 million euros (Rs 342.22 crore) has been made including interest of 2.8 million euros (Rs 22.27 crore) which is disclosed as an exceptional item," Lupin said.

The company intends to appeal against this decision before the European Court of Justice, it added.

In 2014, Lupin and Unichem Laboratories were among six global drug makers on which the European regulator had imposed a collective fine of 427.7 million euros for striking deals to prevent entry of cheaper versions of Perindopril in the EU.

The company's net profit before exceptional items for the third quarter stood at Rs 190.5 crore.

Lupin said its North America sales for third quarter stood at Rs 1,417.4 crore as compared with Rs 1,432.1 crore during the same period of previous fiscal.

In India, the company's formulation sales increased 11.4 per cent to Rs 1,190.2 crore as compared with Rs 1,068.8 crore in the October-December period of 2017-18.

Meanwhile, the Sensex ended 4.14 points lower at 36,971.09. Nifty closed 6.95 points higher at 11,069.40.

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