Pharma major Lupin Limited reported its financial performance for the quarter and six months ended September 30, 2019. These results were taken on record by the Board of Directors at a meeting held in Mumbai today.

Key Financial & Performance Highlights

Sales for the quarter were INR 42,969 m. compared to INR 43,558 m. in Q1 FY2020 Sales for the quarter increased by 10.4% compared to INR 38,909 m. in Q2 FY2019 H1 FY2020: Sales were INR 86,527 m., up 12.9% as compared to INR 76,655 m. in H1 FY2019 Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) for the quarter was INR 8,643 m. (20.1% of sales) compared to INR 9,325 m. (21.4% of sales) in Q1 FY2020 EBITDA for the quarter increased by 10.8% compared to 7,803 m. in Q2 FY2019 H1 FY2020: EBITDA was INR 17,967 m., up 20.5% compared to INR 14,915 m. in H1 FY2019 Net profit before exceptional items was INR 2,582 m. compared to INR 3,031 m. in Q1 FY2020 Net profit for the quarter decreased by 2.9% compared to INR 2,660 m. in Q2 FY2019 H1 FY2020: Net profit was INR 5,613 m., up 19.8%  compared to INR 4,687 m. in H1 FY2019 Investment in Research for the quarter was INR 4,356 m., 10.1% of sales The Company has agreed to pay USD 63.5 million (INR 4,500.6 m.) as settlement in connection with the State of Texas lawsuit in the US and accordingly a provision of USD 53.5 million (INR 3,791.8 m.) [net of earlier provision of USD 10 m. (INR 708.8 m.)] has been made during the quarter During the quarter, the divestment of Kyowa CritiCare Co Ltd (KCC) was completed. This was a strategic move to streamline our Japanese operations due to the limited synergy potential of KCC business with the Company’s operations. The resultant loss on divestment was INR 1,673 m.

Commenting on the results, Mr Nilesh Gupta, Managing Director, Lupin Limited said, “The reported performance for the quarter was bolstered by the NCE licensing income but impacted by one-off items, adjusted for which, the operational performance was as expected. The US business has now stabilized and will grow based on the ramp-up of our in-line products and levothyroxine and the launch of our injectables portfolio. Markets like India continue to deliver solid growth. The next financial year is now looking very strong with important growth drivers like India, the in-line generic business in the US coupled with important launches like generic Albuterol in US and Fostair and Etanercept in Europe. Regulatory compliance remains a top organizational priority and we are making steady progress”