Lupin, a Rs.5,700 crore plus pharma major, has reported consolidated net profit growth of 4.9 per cent during the third quarter ended December 2011 to Rs.235.06 crore from Rs.224.03 crore in the corresponding period of last year. Lower growth in profits is basically due to higher provision of Rs.70 crore for tax as against Rs.23.71 crore in the last period. Its consolidated net sales moved up firmly by 22 per cent to Rs.1792 crore from Rs.1469 crore. EBDITA touched to Rs.376.81 crore from Rs.300.65 crore, representing a growth of 25.3 per cent.

The company's R&D expenditure increased by 19.7 per cent to Rs.141 crore from Rs.118 crore in the last period. This worked out 7.9 per cent of net sales as compared to 8 per cent in the last period. Its material cost decreased by 3.9 per cent to Rs.625.9 crore from Rs.570 crore and its personnel cost increased only by 0.6 per cent to Rs.252.5 crore.

Commenting on the results, Dr Kamal K Sharma, managing director, said, “We had a good quarter aided by strong operating performance, new launches and strong growth across US, India and Japan.”

Lupin's formulation sales in advanced markets increased by 25.6 per cent to Rs.930 crore from Rs.740.4 crore in the similar period of last year. These sales contributed 52 per cent of the net sales for the quarter. Formulation sales in US and Europe grew by 20.3 per cent to Rs.683 crore from Rs.568 crore. Its branded business in US grew by 32.4 per cent and generic business moved up by 18.2 per cent. The branded business was fueled by growth in prescriptions both for Suprax as well as Antara. Lupin launched three oral contraceptives products in the US market which included the authorized generic for Femcon Fe from Warner Chilcott.

During the quarter, Lupin filed three ANDAs bringing the cumulative filings to 156 ANDAs. It received approvals for 7 ANDAs from US FDA (13 in all in the past 9 months), which takes the total approvals to 61. The approvals included Irbesartan tablets, Levetiractam oral solution, Lamivudine and Zidovudine tablets, minocylicine ER tablets, Duloxetine DR capsules, Fenofibrate tablets 48 mg and 145 mg.

The European business declined slightly to Rs.64.4 crore during the third quarter ended December 2011 from Rs.65.5 crore in the last period. It launched Desloratadine tablets and Levetiracetam tablets in the French market. It filed four MAA filings, including one DCP and received four approvals. The cumulative filings for EU stand at 106 of which 55 were approved. Japanese sales improved by 42.9 per cent to Rs.246.8 crore and contributed 13.8 per cent of overall revenues.

Its Indian business achieved growth of 29.8 per cent to Rs.520 crore from Rs.400.50 crore in the same third quarter of last year. Indian business contributed 29 per cent to its overall revenues. Other emerging market posted growth of 42 per cent at Rs.143.9 crore as compared to Rs.101.10 crore. The company's South Africa based subsidiary Pharma Dynamics reported sales growth of 17.2 per cent to Rs.58.30 crore during third quarter ended December 2011 as against Rs.49.80 crore. Its APIs sales declined o Rs.198.1 crore from Rs.227.3 crore and contributed 11 per cent to its overall sales.

For the nine months period ended December 2011, Lupin's consolidated sales increased by 21 per cent to Rs.5076 crore from Rs.4195 crore in the similar period of last year. Its net profit moved up by 12.1 per cent to Rs.712 crore from Rs.635 crore.

Lupin's standalone net sales for third quarter increased by 19 per cent to Rs.1,392 crore. Its standalone net profit declined to Rs.214.81 crore from Rs.246.42 crore in the similar period of last year.