Lupin shares end 5% down as Q2 net profit slumps 35% to Rs 409 crore
BT Online October 27, 2015
Shares of Lupin tumbled nearly 6 per cent in trade on Tuesday after the drug major reported a 35 per cent slump in its standalone net profit at Rs 409 crore in the September quarter . The firm posted Rs 630 crore net profit for the quarter ending September 30 2015.
The stock was the top Sensex loser and ended the day 5.25 per cent down after hitting an intraday low of Rs 1932.90, down 5.86 per cent on the Bombay Stock Exchange (BSE).
The EBITDA came in at Rs 672 crore as against Rs 833 crore posted in the corresponding period of last fiscal year. EBITDA margin stood at 21.1 per cent as against 26.7 per cent year-on-year.
"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," said Mr Nilesh Gupta, Managing Director, Lupin.
"For the second quarter, the company posted bad set of numbers, with operating margins coming in lower than expected, consequently net profit. We maintain our NEUTRAL stance on the stock," said Sarabjit Kour Nangra of Angel Broking.