Moneycontrol Bureau
Pharmaceutical firm Lupin supassed street expectations with the third quarter (October-December) net profit rising 42 percent, driven by strong business growth in the US.
"Other markets like India are getting back on track also. Our consistent focus on ramping up operational efficiencies has led to higher margins and better profitability," Nilesh Gupta, managing director said.
Net profit increased to a record level of Rs 476.1 crore as against Rs 335.2 crore in same quarter last year while revenue grew 20.8 percent year-on-year to Rs 3,022 crore in the quarter gone by.
According to CNBC-TV18 poll, analysts had estimated net profit of Rs 452 crore on revenues of Rs 2,848 crore for the quarter.
US formulation sales including IP (which contributed 45 percent to total sales) grew 31 percent to Rs 1,356.7 crore during Q3FY14. In dollar terms, US formulations revenues increased 12 percent year-on-year to USD 215 million during December quarter, the company said in its filing.
The company launched 5 products in the US during the quarter and now has 62 products in the market.
Revenues from Indian formulations business, which contributed 22 percent of overall revenues, rose 14 percent to Rs 650.4 crore as compared to Rs 570.8 crore in same quarter last year.
Its Japan sales (Kyowa + I’rom) climbed 2 percent at Rs 372 crore while South African business and Pharma Dynamics clocked in revenues of Rs 98.3 crore, a growth of 18 percent compared to year ago period.
Rest of world sales, which accounted 5 percent of total revenues, grew 27 percent to Rs 142.2 crore during December quarter.
Earnings before interest, tax, depreciation and amortisation jumped 27.8 percent on yearly basis to Rs 773 crore and operating profit margin expanded 140 basis points to 25.6 percent during October-December quarter.
Other income increased over 22 percent to Rs 32.4 crore that included forex gain of Rs 25.5 crore in the third quarter.
"The overall impact of foreign exchange on net profit was a loss of Rs 68.8 crore, of which Rs 25.5 crore forex gain is reflected in other income, while the corresponding forex loss is captured across various other profit & loss lines," the company elaborated.
Active pharmaceutical ingredients (API) net sales grew 26 percent year-on-year to Rs 297.3 crore during the quarter that contributed 10 percent to consolidated revenues.
Lupin filed 5 abbreviated new drug applications (ANDAs) and received 5 ANDA approvals in the quarter. "Cumulative ANDA filings with the US FDA now stand at 186 with the company having received 96 approvals to date. The company received five approvals from European regulatory authorities in the quarter," Lupin said.
Meanwhile, the board of directors of the company has declared an interim dividend of Rs 3 per share for the year ended March 2014.
Company acquires Nanomi
Lupin has made its foray into the technology intensive complex injectables space by acquiring Netherlands-based Nanomi BV today.
"With the use of Nanomi’s proprietary technology platform, Lupin would be able to make significant in-roads into the niche area of complex injectables," Vinita Gupta, chief executive officer said.
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