Lupin, a Rs.12,600 crore third largest and debt free pharma giant, has suffered setback during the first quarter ended June 2015 basically due to lower sales in US, Japan and South Africa. Its consolidated net profit declined sharply by 16 per cent to Rs.525 crore from Rs.625 crore in the similar period of last year. EBIDT went down by 21.9 per cent to Rs.893 crore from Rs.1,144 crore. Its net sales also declined by 6.4 per cent to Rs.3,074 crore from Rs.3,284 crore. .EPS worked out to Rs.11.67 as against Rs.13.93 in the last period.
After announcement of poor performance, Lupin share price declined sharply by over 5 per cent or by Rs.98 to Rs.1726.50 on BSE.
The company's formulations sales declined by 8 per cent to Rs.2,748 crore from Rs.2,992 crore in the similar quarter of last year. Its formulation sales in US declined sharply by 26 per cent to Rs.1,191 crore from Rs.1,604 crore and that in Japan moved down by 5 per cent to Rs.323 crore from Rs.342 crore. It launched 4 new products in the US market and now it has 81 products in the US market.
Further its sales in South Africa declined by 6 per cent to Rs.82 crore from Rs.87 crore. However, its sales in Rest of World moved up sharply by 44 per cent to Rs.183 crore from Rs.127 crore. Lupin acquired 100 per cent stake in Medquimica Industria Farmaceutica SA Brazil to enter the high growth Brazilian market, shoring up its presence in the Latin American pharma market. Its sales in India increased by 16 per cent to Rs.885 crore from Rs.762 crore. APIs sales increased by 11 per cent to Rs.326 crore from Rs.293 crore.
Nilesh Gupta, managing director, said, “Slowdown in approvals in the US dampened growth during the quarter, even as the company continues to improve on gross margins. We remain focused on evolving our research pipeline, ensuring compliance, operational excellence and acquiring meaningful assets.”
Revenue expenditure on R&D stood at 10.2 per cent of net sales at Rs.313 crore during the first quarter ended June 2015 as compare to Rs.243.9 crore. Its capital expenditure stood at Rs.248 crore. Lupin filed 5 ANDAs and received 6 approvals from the US FDA during the quarter. Cumulative ANDA filings with the US FDA stood at 215 and it received approval or 117 ANDAs. It has 35 first-to-file products which includes 15 exclusive FTF opportunities. It filed one MAA with European regulatory authorities. Cumulative filings with European authorities now stand at 63 with the company having received 52 approvals to date.
The shareholders approved to raise additional funds for an amount not exceeding Rs.7,500 crore to pursue growth opportunities.
Lupin's standalone net sales declined by 14.1 per cent to Rs.2,540 crore during the first quarter ended June 2015 from Rs.2,146 crore in the corresponding period of last year. Its net profit declined by 31.2 per cent to Rs.700 crore from Rs.1,017 crore.