Lupin derives 88% rev from formulation biz

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Lupin derives 88% rev from formulation biz

In an interview with CNBC-TV18, Kamal K Sharma, Managing Director of Lupin, spoke about the company’s results and his outlook for it.

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Excerpts from Midcap Radar on CNBC-TV18 Watch the full show » RELATED NEWS Lupin Q3 cons net profit up at Rs 160 cr Lupin Q3 PAT seen up 41% at Rs 164.25 cr ALSO READ See latest News about Lupin See previous management interviews See what other Experts & Brokerages are saying about Lupin Lupin BSE | NSE 30/05/12 Are Mutual Funds betting on Lupin?

Lupin has declared its third quarter results. The company's Q3 consolidated net profit was up at Rs 160 crore versus Rs 116.5 crore. Its consolidated net sales were up at Rs 1,255 crore versus Rs 961 crore.

In an interview with CNBC-TV18, Kamal K Sharma, Managing Director of Lupin, spoke about the company's results and his outlook for it.

Here is a verbatim transcript of an exclusive interview with Kamal K Sharma on CNBC-TV18. Also watch the accompanying video. 

Q: How the revenues and profits have panned out? Where have you seen significant traction, formulations, API side and drug discovery?

A: The growth has been all around. Overall revenues have grown by 30% corresponding quarter. EBITDA margins have grown 49% and the net profit has gone up by 39%. This is all around. The Indian market grew about 21%, US in dollar term 36% and rupee terms of about 44%, South Africa about 40% and Japan 13%. So it has been a very heartening quarter, 15 quarters in a row we performed well. The international business continues to growth this quarter is 68% of our total revenue and like wise the value added business continues to grow. Our formulation business is about 88%.

Q: How many Abbreviated New Drug Application (ANDA) and Drug Master Files (DMF) are in the pipeline? What capacity utilization you are at which means that if these orders were to come in at some point? Would you need additional capacity or would you deal with what is going on so walk us through the regulatory filing calendar? When that comes on stream and how your capacity if geared to use it?

A: Being a transnational company we submit our files to various geographies but since US has always been iconic in terms of the international business I think we have about 105 filings as of this moment in the US of which 35 have been approved, five of those are tentative, 30 are approved for good and we have 23 products in the market. Out of these 10 of them are market leaders. By the end of this year, we should add another 20 files to US. So that will become about almost 125-130 files.

As regards the capacities, we are very well stacked. We have today eight manufacturing sites in India and one in Japan so that makes it nine.

I must say that ramping up of capacity in tandem with the market requirements is something which is the process that we have to follow very diligently. So I do not see any problems in meeting the demands. We are hungry for more business and we certainly are well aligning to serve that as and when it comes.