Lupin registers net loss of Rs 512 crore in Q4 of 2021-22

New Delhi: Pharma major Lupin posted a net loss of Rs 511.9 crore for the fourth quarter of fiscal 2021-22 due to rising costs, price erosion in the US and impairment expense of Rs 126.7 crore for US-based Gavis.

The company had recorded a net profit of Rs 464 crore in the corresponding quarter last fiscal.

Sales were up by 2.8 percent YoY to Rs 3,864.5 crore. EBITDA for the quarter was down 63 percent to Rs 282 crore.

For the full year, Lupin posted a net loss of Rs 1,509 crore compared to a net profit of Rs 1226 crore in FY21. Sales for the full year grew by 8.5 percent to Rs 16192.8 crore.\

Lupin said that during the year, there was a one-time expense of Rs 193.2 crore related to residual metformin returns from retail and consumers not identified previously during the third quarter of the 2022 fiscal and provision of aged stock returns of oseltamivir given lack of an active flu season for the past two years.

“In Q2 FY2022 we had created a provision of Rs 18,79.5 crore [including Rs 37.5 crore towards litigation and settlement related expenses] under Glumetza class actions. The amounts due to the two plantiffs group was settled in Q3. We had a small reversal on account of litigation expense in Q4 of Rs 1.2 crore. Q2 FY2022 includes impairment expense of Rs 7,07.7 crore for Solosec,” Lupin said in the notes to the profit and loss statement.

Commenting on the results, Nilesh Gupta, Managing Director, Lupin said, “The current quarter was challenging with headwinds in the US on account of price erosion, and inflation in input materials and freight. Our other markets continue solid growth in revenues and profitability. We are focused on optimizing operating expenses and spend and ensuring the evolution of our complex generic platforms along with global portfolio maximization while doubling down on markets like India. We expect our efforts to yield meaningful uptick in profitability, especially in the second half of this fiscal and beyond”