Lupin is currently the second top loser on the BSE. On the back of a poor show for Q2FY20, the company opened over 3% lower at Rs.748 and went down to an intraday low at Rs.738.60, down almost 4.5%.
The company posted a consolidated net loss at Rs.123 crore v/s net profit of Rs.288 crore (YoY). Sales was at Rs.4297 crore, up 10.4%.
Two factors pushed the company into a loss. It agreed to pay Rs.451 crore as settlement in connection with the State of Texas lawsuit in the US and accordingly a provision of Rs.380 crore was made during the quarter. Another cause was the completion of divestment in Kyowa CritiCare Co Ltd (KCC) inorder to streamline its Japanese operations due to limited synergy potential of KCC business with the company’s operations – the resultant loss on divestment was Rs.167 crore.
But for these two one-off expenses, the company had turned in a net profit of Rs.258 crore.
Investment in Research for the quarter was t Rs.436 crore, 10% of sales.