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Lupin share price slips over 6% after Q1 net profit falls 64.72%

Lupin stock declined 6.55% to  Rs 874.9 against previous close of Rs 936.25 on BSE

twitter-logoBusinessToday.In | August 7, 2020 | Updated 14:55 IST
Lupin share price slips over 6% after Q1 net profit falls 64.72%
Lupin share has gained 12.58% in one year and risen 15.06% since the beginning of this year.

Lupin share price fell in trade today after the pharma firm reported a 64.72 percent fall in its consolidated net profit for quarter ended June 2020. Lupin stock declined 6.55% to  Rs 874.9 against previous close of Rs 936.25 on BSE.

At 2: 09 pm, the share was trading 5.20% or Rs 48.70 lower at Rs 887.55.

The share opened with a loss of 3.02%  at Rs 936.25 today. It trades higher than 20 day, 100 day and 200 day moving averages but lower than 5 day and 50 day moving averages.

The pharma share has gained 12.58% in one year and risen 15.06% since the beginning of this year. Total 2.39 lakh shares changed hands on BSE amounting to turnover of Rs 21.18 crore.

Market cap of Lupin fell to Rs 40,225 crore on BSE. Net profit fell to Rs 106.90 crore for the quarter to June 2020 as business was hit by Covid-19 pandemic.

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Revenue from operations declined to Rs 3,527.9 crore in Q1 compared to Rs 3,877.7 crore during the corresponding period a year ago.

"The quarter's performance was impacted by the COVID-19 pandemic and related lockdowns, affecting our key businesses in India and US. We continue to focus on business continuity while ensuring employee safety," Lupin MD Nilesh Gupta said.

"Despite the challenges impacting revenues, we improved margins driven by tight expense control. We expect to continue the momentum on margin improvement. This is a pivotal year for us to deliver on our key complex generic assets and to sustain the momentum on the compliance front," he added.

Yash Gupta, Equity Research Associate at Angel Broking said, "EBITDA was down by 34.6% YoY to  Rs 531.4 crore as compared to  Rs 813.4 crore in Q1FY20 due to increase in employee cost by 400 bps to 22.9%. Lupin has posted a relatively weak set of numbers compared to other large cap companies like Dr. Reddy's and Cadila. We believe that it will continue to face execution challenges in the near future. Therefore we continue our preference for Dr. Reddy's in the large-cap pharma space."

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By Aseem Thapliyal

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