Lupin Q1 net plunges 59% to Rs 358 cr

Lupin has been hit by regulatory sanctions, warnings over quality control at their production sites

Drugmaker Lupin Ltd said on Wednesday first quarter profit fell 59 per cent, well below analysts' estimates, as regulatory hurdles and pricing pressure in the United States, its biggest overseas market, weighed.

Indian drugmakers have been hit by regulatory sanctions and warnings over quality control at their production sites, hurting sales in the United States. Regulatory scrutiny over drug prices in that region has also dented margins.

Lupin, which specialises in oral contraceptives and drugs to treat diabetes and hypertension, said sales in the United States fell about 27 per cent to Rs 1,602 crore, while domestic sales were down 1.8 per cent at Rs 932 crore.

Profit for the three months ended June fell to Rs 358 crore ($56.13 million) from Rs 882 crore a year earlier, the drugmaker said.

Analysts on average expected Lupin to post a profit of Rs 479 crore, Thomson Reuters data showed.

The results were below expectations as prices of some products such as Lupin's generic diabetes drug fell and as domestic sales took a hit due to the implementation of a nationwide goods and services tax, said Managing Director Nilesh Gupta in a statement.

Lupin's shares were up 2.2 per cent as of 0836 GMT in a broader market that was down 0.17 per cent.