Lupin has posted strong financial performance during the second quarter
ended September 2010 on account of sustain growth in US and Japan as
well as in emerging markets. Its consolidated net profit went up by 34.1
per cent to Rs.215.02 crore from Rs.160.30 core in the corresponding period of
last year. Its net sales increased by 26 per cent to Rs.1405 crore from Rs 1115 crore. With strong
growth in profits, Lupin's earnings per share touched to Rs.4.83 as against Rs.3.8
in the last period.

The company's formulation sales in advanced
markets like US, Europe and Japan increased by 40 per cent to Rs.673 crore from Rs.482
crore with contribution of 48 per cent of the net sales for the
quarter. Formulation sales in US and EU grew by 46 per cent to Rs.516 crore from Rs.353
crore. It emerges as the 5th largest generic player in the US in terms
of prescription drugs. Further, it also emerged as the market in 14 out
of 28 generic products in the US.

Dr Kamal Sharma, managing
director, said, “Lupin's sustained growth performance over the last 18
quarters is not only a reflection of the strong business philosophy
guiding us, but also a vindication of our robust vertically integrated
business model, that continues to unlock increasingly higher revenues,
profitability and strong sustainable growth across all business segments
and markets. This quarter's business performance was due to strong
business performance in the US and Japan, solid domestic growth
increased activity in all key pharmerging markets including South Africa
and Australia.”

The branded business in US improved by 10 per
cent and generics business increased by 53 per cent. During the second
quarter, it filed 2 ANDAs bringing the cumulative filings to 132 ANDA
filings, of which 45 have been approved by the US FDA.

Lupin's
Japanese subsidiary, Kyowa grew by 22 per cent to Rs.157
crore during the second quarter and contributed 11 per cent of the
overall revenues. The sales of South African subsidiary, Pharma Dynamics
increased by 28 per cent to Rs.42.2 crore
from Rs.33 crore.

Its formulation
net sales in India grew by 16 per cent to Rs.419
crore from Rs.363 crore. APIs sales
continued to post strong growth clocking net sales of Rs.195 crore and contributed 14 per cent to its
consolidated revenues.

The earnings before interest, depreciation
and taxation surged by 37.6 per cent to Rs.300.06
crore from Rs.218.01 crore. Revenue
expenditure on R&D increased to Rs.116
crore from Rs.82 crore and it worked out
to 8.2 per cent of net sales during the quarter under review.

For
the first half ended September 2010, Lupin's net sales increased by
23.5 per cent to Rs.2717 crore from Rs.2200 crore in the similar period of last
year. Its net profit jumped by 36.9 per cent to Rs.411.32
crore from Rs.300.41 crore. The company
managed to reduce its interest burden to Rs.16.90
crore from Rs.19.84 crore in the last
period. Debt equity ratio improved to 0.32 as on September 30, 2010 from
0.37 as on March 31, 2010. Its R&D expenditure increased to Rs.219.47 crore from Rs.150.64
crore.