Lupin Ltd suffered a decline in net profit for its first quarter ended June 2004 by 26.4 per cent to Rs. 20.64 crore from Rs 28.06 crore in the corresponding period of last year.

The company's net sales increased by 13.8 per cent to Rs 300.74 crore from Rs 264.35 crore, but its other income declined by 40 per cent to Rs 2.23 crore from Rs 3.71 crore.

Heavy investment in R&D activity, higher initial promotional expenses and exchange rate difference are the main factors responsible for the decline, revealed company officials.

The company has spent significant higher amount on R&D, which went up by 222 per cent to Rs 17.29 crore from Rs 5.37 crore in the similar period. The earning per share worked out to Rs 5.14 as against Rs 6.99.

Lupin is expecting to file 14 ANDAs during the current financial year. The company aims to go at an impressionable rate of two ANDAs every quarter revealed Dr. Desh Bandhu Gupta, Chairman, Lupin Ltd. These ANDAs will be filed in the areas of anti-infectives and CVS segments.

The company's key research thrust for the current year will be in the areas of statins and a new anti-TB molecule. "We will be increasing our R&D expenditure to Rs. 122 crore from the previous year's Rs. 46 crore. Our Capex for this year will be increased to Rs. 150 crore from previous year's Rs. 80 crore," said Gupta.

Lupin is aiming to come forth with new range of statins like Pravastatin and Atorvastatin. The company is also evaluating the option of issuing ADR/GDRs, within a year.

Although, new avenues in the areas of manufacturing and R&D are being sought after, the company's existing stronghold, the anti-TB segment will not be looked down upon, said Gupta. "We have the largest market share of 44 per cent (volume wise) in the domestic anti-TB segment. The next biggest group is having a share of only 12 per cent. We want to continue our growth further," said Gupta.

The promoters of Lupin own 50.48 per cent of promoters holding in the company