Lupine posts a net loss of Rs 512 cr in the fourth quarter due to higher costs and impairment charges

Pharmaceuticals major Lupine reported a net loss of Rs 511.9 crore for the fourth quarter of FY2021-22 due to rising costs, price erosion in the US and a charge of depreciation of Rs 126.7 crore for the American company Gavis.

Lupine had recorded a net profit of Rs 464 crore in the corresponding quarter of the previous financial year.

Sales rose 2.8% year-on-year to Rs 3,864.5 crore. EBITDA for the quarter fell by 63% to Rs 282 crore.

For the full year, Lupine recorded a net loss of Rs 1,509 crore compared to a net profit of Rs 1,226 crore in FY21. Sales for the full year increased by 8.5%. to reach Rs 16,192.8 crore.

Lupine said that during the year, there was a one-time expense of Rs 193.2 crore related to residual metformin returns from previously unidentified retailers and consumers during the third quarter of fiscal 2022 and the supply of aged stock returns of oseltamivir given the absence of an active influenza season over the past two years.

“In the second quarter of FY2022, we had created a provision of Rs 18,79.5 crore [including Rs 37.5 crore towards litigation and settlement related expenses] in the Glumetza class actions. The amounts due to the group of the two plantiffs were settled in Q3. We had a small reversal due to litigation charges in the fourth quarter of Rs 1.2 crore. The second quarter of FY2022 includes an impairment charge of Rs 7,07.7 crore for Solosec,” Lupine said in the notes to the income statement.

Commenting on the results, Nilesh Gupta, Lupin’s Managing Director, said, “The current quarter has been challenging with headwinds in the US due to price erosion and inflation in inputs and freight. Our other markets continue to experience solid revenue and profitability growth. We are focused on optimizing spend and opex and evolving our complex generic platforms as well as maximizing the global portfolio while doubling our efforts in markets like India. We expect our efforts to translate into a significant increase in profitability, particularly in the second half of this fiscal year and beyond. »

Dear reader,

Business Standard has always endeavored to provide up-to-date information and commentary on developments that matter to you and that have wider political and economic implications for the country and the world. Your constant encouragement and feedback on how to improve our offering has only strengthened our resolve and commitment to these ideals. Even in these challenging times stemming from Covid-19, we remain committed to keeping you informed and updated with credible news, authoritative opinions and incisive commentary on relevant topical issues.
However, we have a request.

As we battle the economic impact of the pandemic, we need your support even more so that we can continue to bring you more great content. Our subscription model has received an encouraging response from many of you who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of bringing you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practice the journalism we are committed to.

Support quality journalism and subscribe to Business Standard.

digital editor

Ann J. Cox