Lupin, a Rs. 12,600 crore Mumbai based fourth largest pharma giant, has suffered minor setback during the fourth quarter ended March 2015 and its consolidated net profit declined by 1.1 per cent to Rs. 547 crore from Rs. 553 crore due to stagnant sales. Further its other operating income also declined to Rs. 24 crore from Rs. 69 crore. Its sales remained almost same level at Rs. 3,054 crore. Its EBIDTA improved by 8.6 per cent to Rs. 806 crore from Rs. 882 crore. EPS was under pressure and worked out to Rs. 12.17 as against Rs. 12.34 in the last period. The company continues to enjoy 'Debt Free' status.
The company management recommended equity dividend of 375 per cent for the year 2014-15 on equity share of Rs. 2 each. Lower profit put pressure on share price movement and Lupin scrip declined by over Rs. 65 to Rs. 1,684 from its previous day's close of Rs. 1749.25 on BSE. The scrip touched to its yearly high level at Rs. 2112 on April 8, 2015.
Nilesh Gupta, managing director, said, “Higher price erosion in the US as well as a slowdown in product approvals impacted growth in the quarter, but overall the company has done well to improve gross margins and enhance profitability for the year. We continue to ramp up investment in research in segments like inhalation, complex injectables and biosimilars. Our execution strength, pipeline evolution and planned M&A will drive our future as a global generic and specialty pharmaceutical company.”
For the full year ended March 2015, Lupin's consolidated net sales increased by 13.7 per cent to Rs. 12,600 crore from Rs. 11,087 crore in the previous year. Its net profit went up by 30.9 per cent to Rs. 2,403 crore from Rs. 1,836 crore. Its EBIDTA improved by 16.2 per cent to Rs. 3,860 crore from Rs. 3,119 crore.
The formulation sales improved by 14.4 per cent to Rs. 11,406 crore from Rs. 9,973 crore in the previous year. Its formulation sales in US increased by 16.1 per cent to Rs. 5,658 crore from Rs. 4,875 crore and that in Europe moved up by 7.5 per cent to Rs. 328 crore as against Rs. 305 crore. US sales worked out to 45 per cent of its total sales and US brands business contributed 9 per cent of total US sales whereas the generics business contributed 91 per cent during 2014-15. The company launched 12 new products in the US market, including InspiraChamber. It has now 77 products in the US market.
Its domestic sales went up by 19.7 per cent to Rs. 2,968 crore from Rs. 2,480 crore. The company's sales in Japan improved marginally by 2.2 per cent to Rs. 1,324 crore from Rs. 1,296 crore. Its APIs sales improved by 7.2 per cent to Rs. 1,194 crore from Rs. 1,114 crore.
Its other income, including other operating income, moved up by 29.8 per cent to Rs. 410 crore from Rs. 316 crore. The interest cost declined to Rs. 10 crore from Rs. 27 crore. However, employees cost went up by 19.3 per cent to Rs. 1,747 crore from Rs. 1,465 crore. Depreciation provision increased sharply by 66.7 per cent to Rs. 435 crore from Rs. 261 crore.
Its R&D revenue expenditure increased by 18.3 per cent to Rs. 1,099 crore from Rs. 929 crore. This worked out to 8.4 per cent of sales.
The company filed 18 ANDAs and received 12 approvals. Cumulative ANDA filings with the US FDA stood at 210 as at the end of March 2015 having received 111 approvals. It has 34 First-to-Files (FTF) products which includes 15 exclusive FTF opportunities. Further, it filed 2 MAAs with European regulatory authorities and received 1 approval. Cumulative filings with European authorities now stand at 62 with the company having received 52 approvals.