Lupin's net profit for the quarter ended September 30, 2003 is a mere Rs. 86 lakh compared to Rs. 27.85 crore the year ago. The decline is as a result of a huge extra ordinary expenditure of Rs. 50.89 crore that the company had to bear. Extraordinary items net of tax of Rs 50.9 crore comprising diminution in the value of certain fixed assets (Rs 15.5 crore) rendered obsolete and overdue receivables and advances (Rs 35.4 crore) were responsible for the lower growth.

However, the profit (before extraordinary items) of Rs 51.8 crore for the quarter ended 30 September 2003, was 86 per cent higher compared to Rs 27.9 crore during the corresponding period last year.

Gross sales (including excise duty) for the quarter stood at Rs 360.9 crore, up 36 per cent from Rs 266.2 crore a year ago. The advanced markets of North America and Europe fueled this growth. Revenues from advanced markets (representing 19 per cent of the total) rose 221 per cent to Rs 85.4 crore (Rs 26.6 crore). This includes revenue of Rs 32.4 crore from Cefuroxime Axetil tablets, launched in the US during this period through a marketing alliance with Watson Pharmaceutical, Inc.

Net sales (excluding excise duty) for the quarter increased by 38 per cent to Rs 345.7 crore (Rs 249.9 crore).

Total Q2 revenues from the advanced markets of North America and Europe were at Rs 85.4 million, up 221 per cent. Q2 revenues from exports of APIs (active pharmaceutical ingredients) to the advanced markets of North America and Europe were up 99 per cent at Rs53 crore. Lisinopril and Cefotaxime contributed more than 85 per cent of API revenues from advanced markets in Q2 and H1. Lupin received US FDA approval on its ANDA for Cefuroxime Axetil tablets in July 2003. After patent expiry, the company launched Cefuroxime Axetil in the US through a marketing alliance with Watson Pharmaceutical, Inc.

The company also received approval from the US FDA for Cefotaxime vials for injection and Ceftriaxone vials for injection during Q2.

In the near future, the company expects to deliver 30-35 per cent growth in gross revenues and 85-90 per cent growth in operating net profit over the previous year. The growth is expected to be fuelled through sales of generics products and specialties in advanced markets as well as the significant improvement in the Indian market for Lupin's finished products.

API sales, which includes both developed and developing markets, are expected to grow significantly.