Lupin Ltd reported a nominal rise in net profit at Rs.73.07 crore during the year ended March 31, 2003 as against a net profit of Rs.72.18 crore in the previous year. This is despite a notable rise in sales at Rs.1041.11 crore from the level of Rs.875.83 crore in the previous year.

Lower profitability was mainly on account of the poor performance of the company during the last quarter. According to a company press release, Lupin recorded a sharp fall in net profits at Rs.2.28 crore during the fourth quarter as against Rs.13.9 crore in the corresponding period of last year. The total income, however, increased to Rs 269.24 crore as against Rs 223.66 crore in the same period of the previous year.

Lower offtake by distributors on account of the uncertainity of implementation of VAT during the fourth quarter, the price cuts imposed by the NPPA and stiff competition in the domestic market also contributed to the low growth rate.

The board of directors of the company has recommended a dividend of 50 per cent for the year ended March 31, 2003.

During the year under review, the company reduced overall debt by Rs 48 crore, including the redemption of Rs 7 crore preference share capital.

A surge in sales of active pharmaceutical ingredients (API) to advanced markets of the US, Europe and developing markets, including India, more than compensated for a marginal dip in sales from the India formulations business, the release said.

Revenue from API sales to advanced markets increased to Rs. 108.8 crore (Rs. 72.8 crore) and revenue from API sales to developing markets, including India, grew to Rs. 571 crore (Rs. 448.8 crore). Revenue from the formulation business was at Rs. 435.1 crore (Rs. 428.3 crore).

Amongst the major therapeutic focus groups, the share of cephalosporins in Lupin's FY 2002-03 revenue rose from 48 per cent to 50 per cent; anti-TB fell from 37 per cent to 30 per cent, and cardiovasculars rose from 5 per cent to 11 per cent. Lupin's ACE inhibitors continued to do well with a growth rate of 30.5 per cent compared with the market growth rate of 13.2 per cent. The company filed its first IND application for anti-migraine molecule LLL 2011 with the Drug Controller General of India (DCGI). The company filed 21 DMFs during the year and 103 DMFs as of date. Three abbreviated new drug applications (ANDA) were filed with the USFDA for generic cephalosporins, the release said.