Pharma company Lupin on August 3 has swung to a consolidated loss of Rs 89.08 crore for the quarter ended June from a profit of Rs 542.46 crore a year ago. A significant decline in North America and India business hit earnings but the company expects a strong bounceback in the September quarter.
Consolidated revenue from operations for the June quarter fell 12.3 percent to Rs 3,743.84 crore, with North America business falling 24.2 percent to Rs 1,010.4 crore and India business declining 8.8 percent to Rs 1,492 crore.
North America business contributed 28 percent to revenue and India 41 percent.
"Our numbers are muted in the quarter but we expect a strong bounceback from September quarter," Nilesh Gupta, managing director, said.
He further said US sales declined significantly as Lupin took several strategic decisions to pave the way for building a sustainable and profitable business. During the quarter, Lupin pared down inventories and made shelf stock adjustments on select products.
Lupin filed four abbreviated new drug applications in the quarter, received four ANDA approvals from the US, and launched one product in the quarter in the US. The company now has 167 generic products in the US.
Growth markets and EMEA (Europe, Middle East and Africa) registered more than 27 percent growth each while rest of the world grew 63 percent.
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Lupin said it has now implemented several optimisation measures including addressing workforce in operations and supporting functions to improve cost position and ensure competitiveness.
"While the benefits of this optimisation will start accruing from the September quarter, we are now focused on getting back on the growth path driven by growth in key markets like India and multiple important complex generic launches in the US and other developed markets," the company said.On the operating front, core profit for the June quarter fell 76 percent to Rs 237.9 crore and margin declined 1,680 basis points to 6.6 percent.