Lupin shares fall by 7.31% after poor quarterly results

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Mumbai | Updated: May 26, 2017 4:30:11 AM

Lupin has posted a net profit of Rs380 crore as against the Bloomberg Consensus estimate of Rs643 crore.

Lupin, March quarter earnings, net profit, Bloomberg ConsensusThe net profit of the company for the March quarter was 49.12 % less than its net profit during the same period in the previous year. (PTI)

The share price of Lupin fell by 7.31% on Thursday, after the company posted a lower than expected March quarter earnings. The net profit for the quarter ended March 2017 was much less than the Bloomberg Consensus estimate. Lupin has posted a net profit of Rs380 crore as against the Bloomberg Consensus estimate of Rs643 crore.

The net profit of the company for the March quarter was 49.12 % less than its net profit during the same period in the previous year. For the quarter ended March 2016, the company posted a net profit of Rs747.8 crore. The decline in US revenues and certain one-time expenses were attributed as reasons for the loss.

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In a note to investors, Motilal Oswal said it expected Lupin’s US business to decline by 5% year-on-year due to new competition in the diabetes portfolio and likely deferral of key approvals. “EBITDA margin is expected to shrink to 24.8% in FY18 versus management guidance of 26 -28% as it will be difficult to compensate for the loss of the high -margin US business,” the note said.

Edelweiss said the pricing pressure and concentration risk in the US portfolio will render growth challenging in FY18/19. “Not only will growth dip, margin trajectory too will be difficult to maintain due to falling in these lucrative US products and R&D expenses inching up,” Edelweiss said in a note.

The stock hit a 34 month low and ended the session at Rs1,137.95. From the beginning of the year till date Lupin has fallen by 23.3% against Sensex rise of 15.5%.

A total of 88.86 lakh shares were traded on BSE and NSE, this is much higher than its six-month average daily volume of 9.98lakh shares.

Among the 43 analysts who track the stock 27 have given it a ‘Buy’, while 11 has given a ‘Hold’ and the remaining five given it a ‘Sell’ rating.

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