Lupin delivers net loss on back of one-time impairment loss

Pharma major, Lupin, reported its results for the quarter ended March 31, 2018 on Tuesday.

The company’s consolidated revenue for the quarter came in at Rs. 4,033.83 crore, registering 5.2 per cent yoy decline.

EBITDA for the quarter fell by 9.3 per cent yoy to Rs. 708.75 crore with a corresponding margin contraction of 80 bps. EBITDA margin for the quarter stood at 17.6 per cent.

The loss after exceptional item for Q4FY18 came in at Rs. 783.54 crore as against a net profit of Rs. 380 crore in the corresponding quarter last year. The exceptional item represents impairment provision of Rs. 1,464.4 crore on certain intangible assets acquired as part of the Gavis Group acquisition (Gavis). Deferred tax for Q4FY18 and FY18 includes deferred tax assets of Rs. 322.3 crore created on difference between tax and book value of certain intangible assets of Gavis.

The net profits before exceptional item for Q4FY18 came in at Rs. 358.6 crore compared to Rs. 380.2 crore in Q4FY17.

Looking at the full year numbers, we see that revenue slid by 10 per cent to reach Rs. 15,804.15 crore while EBITDA fell by 30 per cent to Rs. 3,147.51 crore. The company reported net profit of Rs. 251.26 crore, down 90 per cent yoy.

Investment in Research for the quarter was Rs. 401.5 crore, 10.1 per cent of sales.

The company's Board of Directors have recommended a dividend of Rs. 5 per equity share of Rs. 2 each.

On Tuesday, the stock opened at Rs. 752.50 per share and touched an intra-day high and low of Rs. 772.20 and Rs. 723.55, on the BSE.