Lupin, a Rs 2700 crore plus Mumbai-based pharma giant, has posted lower consolidated net profit during the third quarter ended December 2008 on account of higher R&D expenditure, employees cost, interest burden and lower operating income. The company's consolidated net profit declined by 35.6 per cent to Rs 116.50 crore from Rs 180.86 crore in the corresponding period of last year. Its consolidated net sales, however, improved by 33.4 per cent to Rs 961.84 crore from Rs 721.29 crore. With lower profits and rise in equity capital, its earnings per share nosedived to Rs 14.08 from Rs 22.04 in the last period.
The company's other operating income declined sharply by 83.8 per cent to Rs 21.84 crore from Rs 134.96 crore in the corresponding period of last year. The employees cost increased by 45.2 per cent to Rs 120.52 crore from Rs 82.98 crore and its interest cost went up by 44.4 per cent to Rs 14.56 crore from Rs 10.08 crore. The research and expenditure during the quarter went up 60.7 per cent to Rs 59.86 crore from Rs 37.24 crore.
For the first nine months ended December 2008, Lupin's consolidated net profit improved by 10.2 per cent to Rs 344.16 crore from Rs 312.38 crore in the similar period of last year. The net profit largely impacted by significant rise in employees cost and interest burden. Its R&D expenditure for the first nine months increased by 57.8 per cent to Rs 167.40 crore.
Commenting on the performance, Dr Kamal Sharma, managing director, said, "The past ten quarters have been noteworthy. We have continued to outpace and outperform across business segments and markets consistently having steadily consolidated our footprint globally. Recent launches, product approvals and patent settlements, substantial growth in filings, and more importantly - growth in market shares - are an affirmation of the success of our 'Strategic Approach' & the effectiveness of our 'Go to Market' programmes. Our strengths in R&D and the quality of our Intellectual property is a testimony to Lupin's vision & commitment to developing and delivering quality & cost-effective drugs for everybody."
Lupin's advanced markets formulation business in USA and Europe clocked in sales of Rs 340.5 crore as compared to Rs 229.70 crore, a growth of 48 per cent. Lupin achieved market leadership in seven of the 20 products in the US markets. The company also settled all ongoing Hatch-Waxman litigation relating to Desloratadine tablets, the generic version of Schering-Plough's 'Clarinex' tablets during the quarter. It has further consolidated is market position in Europe by completing its acquisition of Hormosan Pharma GmbH.
The formulations revenues from emerging markets including India achieved a growth of 24 per cent to Rs 323.6 crore from Rs 260.5 crore. API revenues from emerging markets were at Rs 132.8 crore. The sales in Japan increased by 21 per cent to Rs 131.9 crore. Recently launched Amlodipine 'Amel' continues to maintain majority market share. It also completed and consolidated its acquisition of a majority stake in Parma Dynamics in South Africa.
The domestic formulations business clocked a growth of 27 per cent to Rs 279.1 crore mainly due to good performance in the CVS, diabetes, CNS, asthma and gastro segments. The company has maintained its leadership in Anti-TB segment and has secured a double digit market share in the anti-asthma market.
The company filed seven ANDAs during the quarter ended December 2008. The total tally of first to files stands at eight.