Moneycontrol
Feb 07, 2018 09:00 AM IST | Source: CNBC-TV18

Lupin Q3 profit seen down 33% to Rs 427 cr on pricing pressure in US

Analysts expect US revenue to decline 30-35 percent YoY in Q3FY18 while India should continue recovering post GST.

Moneycontrol News @moneycontrolcom

Pharma major Lupin is expected to report a 32.6 percent decline year-on-year in profit at Rs 426.6 crore for December quarter due to continued pricing pressure in the US.

Revenue from operations during the quarter is seen falling 12.2 percent to Rs 3,935.4 crore from Rs 4,483 crore, according to average of estimates of analysts polled by CNBC-TV18.

Operating profit is likely to decline 31.3 percent year-on-year to Rs 835 crore and margin may contract 592 basis points to 21.2 percent for quarter ended December 2017.

Analysts feel the numbers continue to be impacted due to overall pricing pressure in US and warning letter on Goa plant & Pithampur unit 2.

Even there was high base as Q3FY17 revenue grew by 26 percent YoY with North America up 57.6 percent YoY.

Analysts expect US revenue to decline 30-35 percent YoY in Q3FY18 while India should continue recovering post GST.

Price pressure is in key products in US, which are diabetes drugs Fortamet, Glumetza generic and Minastrin (women’s health).

Commentary will be key on price pressure and remediation on warning letter.

The company got a combined USFDA warning letter for Goa + Pithampur Unit 2 plants on November 6.
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