Lupin’s results were a tad disappointing; ONGC was in line—realisations are improving, but limited by the subsidy burden

LUPIN

• Net sales were at the lower end of expectations and net profit at the higher end.
   
• Staff costs and other expenditure rose sharply. However, other income and a lower tax rate helped net profit growth.
   
• Export formulations to unregulated markets were up 31% at Rs1.1 billion.
   
• The company has filed five abbreviated new drug applications during the quarter and remains one of the largest filers from India. It also has one of biggest pending ANDA pipelines among Indian pharma companies.
  
  

 Lupin’s share has been falling over the last month or so.

 ONGC

• Both net profit and net sales were higher than expected.
   
• Natural gas sales were up nicely due to upward revision in APM gas prices.
   
• Subsidy burden was up 21%.
   
• Since dry well write-offs and survey expenses were lower this quarter, chances are they will be higher next quarter.
   
• A sharp rise in subsidy burden limited the rise in realisations.
   
• Domestic crude volumes were up after declining for 10 out of 12 quarters.

 ONGC’s share price has been falling over the last three months but is seen to be picking up of late.

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