Lupin Ltd: Strong Growth, Record Profits - Quarter III Results, FY 2013-14
MUMBAI, India, February 3, 2014 /PRNewswire/ --
Net Sales up 21%; EBITDA up 28%; Net profit up 42%
Declares Interim Dividend of 150 %
Lupin Limited reported its performance for the third quarter ended 31st December, 2013. These unaudited results were taken on record by the Board of Directors at a meeting in Mumbai today.
- Net sales grew by 21% to Rs. 29,830 m. during Q3, FY 2013-14, up from Rs. 24,659 m. (Q3, FY 2012-13)
- 9M, FY 2013-14: YoY growth of 16% to Rs. 80,351 m. from Rs. 69,243 m.
- EBITDA margin grew by 28% to Rs. 8,057 m. during Q3, FY 2013-14, up from Rs. 6,314 m. (Q3, FY 2012-13)
- 9M, FY 2013-14: YoY growth of 37% to Rs. 22,371 m. from Rs. 16,329 m.
- Profit before tax grew by 33% to Rs. 7,379 m. during Q3, FY 2013-14, up from Rs. 5,550 m. (Q3, FY 2012-13)
- 9M, FY 2013-14: YoY growth of 45% to Rs. 20,360 m. from Rs. 14,020 m.
- Net profit grew by 42% to Rs. 4,761 m. during Q3, FY 2013-14, up from Rs. 3,352 m. (Q3, FY 2012-13)
- 9M, FY 2013-14: YoY growth of 42% to Rs. 12,834 m. from Rs. 9,061 m.
- Board of Directors approve Interim Dividend of 150 %
Commenting on the results, Nilesh Gupta, Managing Director, Lupin Limited, said "We have had a robust quarter with record profits, driven in particular by strong business growth in the US. Other markets like India are getting back on track also. In addition, our consistent focus on ramping up operational efficiencies has led to higher margins and better profitability."
Unaudited consolidated financial results for the quarter ended December, 2013 (YoY comparison)
Figures in Rs. M
% of net % of net YoY
Particulars Q3 2013-14 sales Q3 2012-13 sales growth %
Net sales 29,830 100.0% 24,659 100.0% 21.0%
Other operating income 390 1.3% 352 1.4% 10.8%
Total revenue 30,220 101.3% 25,011 101.4% 20.8%
Raw material consumed 11,210 37.6% 9,357 37.9% 19.8%
Gross margin (excl.
other operating
income) 18,620 62.4% 15,302 62.1% 21.7%
Employees cost 3,787 12.7% 3,198 13.0% 18.4%
Manufacturing & other
expenses 7,490 25.1% 6,406 26.0% 16.9%
Operating margin 7,733 25.9% 6,049 24.5% 27.8%
Other income 324 1.1% 265 1.1% 22.3%
EBITDA 8,057 27.0% 6,314 25.6% 27.6%
Depreciation 637 2.1% 688 2.8% -7.4%
EBIT 7,420 24.9% 5,626 22.8% 31.9%
Interest & finance
charges 41 0.1% 76 0.3% -46.0%
PBT 7,379 24.7% 5,550 22.5% 33.0%
Tax 2,542 8.5% 2,116 8.6% 20.1%
PAT 4,837 16.2% 3,434 13.9% 40.9%
Minority interest &
share of loss in
associates 76 0.3% 82 0.3% -7.3%
Net profit 4,761 16.0% 3,352 13.6% 42.0%
Profit & loss highlights
- Material cost decreased by 0.3% to 37.6% of net sales at Rs. 11,210 m. during Q3, FY 2013-14 as compared to Rs. 9,357 m. for Q3, FY 2012-13.
- Manufacturing & other expenses decreased by 0.9% to 25.1% of net sales at Rs. 7,490 m. during Q3, FY 2013-14 as compared to Rs. 6,406 m. for Q3, FY 2012-13.
- Personnel cost decreased by 0.3% to 12.7% of net sales, at Rs. 3,787 m. during Q3, FY 2013-14, as against Rs. 3,198 m. (Q3, FY 2012-13).
- Revenue expenditure on R&D stood at 9.1% of net sales at Rs. 2,710 m., as compared to Rs. 2,382 m. for Q3, FY 2012-13.
- The overall impact of foreign exchange on net profit was a loss of Rs. 688 m., of which Rs. 255 m. forex gain is reflected in other income, while the corresponding forex loss is captured across various other P&L lines.
Balance sheet highlights
- Operating working capital increased to Rs. 27,695 m. as on 31st December, 2013 as against Rs. 26,743 m. as on 30th September, 2013. The working capital number of days stood at 94 days as on 31st December, 2013 as against 96 days on 30th September, 2013.
- Capital Expenditure was Rs. 1,041 m. in the quarter.
- The Company now is debt free at the net debt level.
YOY growth
Particulars Q3 2013-14 Q3 2012-13 %
Formulations 26,857 22,306 20%
US (including
IP) 13,567 10,390 31%
Europe 661 598 11%
India 6,504 5,708 14%
Japan 3,720 3,658 2%
South Africa 983 831 18%
Rest of world 1,422 1,121 27%
API 2,973 2,353 26%
Total net
sales 29,830 24,659 21%
US & Europe
US formulation sales (including IP) grew by 31% to Rs. 13,567 m. during Q3, FY 2013‐14, as against Rs. 10,390 m. for Q3, FY 2012‐13, contributing 45% of overall sales. US brands business stood at 11% of total US sales, whereas the generics business contributed 89% in Q3, FY 2013‐14.
- In dollar terms, US formulations revenues increased by 12% to USD 215 m. for Q3, FY 2013‐14.
- The Company launched 5 products in the US during the quarter and now has 62 products in the market.
- Lupin is the market leader in 26 products in the US generic market and is amongst the Top 3 by market share in 44 products (IMS Health, September 2013).
India formulations
The Indian formulations business contributed 22% of the Company's overall revenues for the quarter. The Company's India formulation business grew by 14%, recording revenues of Rs. 6,504 m. during Q3, FY 2013-14, as compared to Rs. 5,708 m. for Q3, FY 2012-13.
Japan
Lupin's Japan Sales (Kyowa + I'rom) clocked in at Rs. 3,720 m. during the quarter. Japan now contributes 12% to Lupin's consolidated revenues. Total revenues increased to JPY 6,046 m. from JPY 5,497 m., a growth of 10% in JPY terms.
Kyowa revenues (excluding I'rom) stand at Rs. 2,787 m. for Q3, FY 2013-14. In JPY terms, Kyowa revenues (excluding I'rom) increased to JPY 4,530 m from JPY 3,910 m. in the previous year, a growth of 16%.
South Africa
Lupin's South African Business, Pharma Dynamics clocked in revenues of Rs. 983 m. during Q3, FY 2013-14, representing a growth of 18%. Total revenues increased to ZAR 161 m. from ZAR 131 m., a growth of 23% in local currency terms.
API
API net sales grew by 26% to Rs. 2,973 m. during the quarter as compared to Rs. 2,353 m. for Q3, FY 2012-13 and contributed 10% to Lupin's consolidated revenues.
R&D
Revenue expenditure on R&D for Q3, FY 2013-14 stood at Rs. 2,710 m., 9.1% to net sales as against Rs. 2,382 m., 9.7% to net sales for Q3, FY 2012-13. Revenue expenditure on R&D for 9M, FY 2013-14 stood at Rs. 6,838 m., 8.5% to net sales as against Rs. 5,099 m. 7.4% to net sales for 9M, FY2012-13.
Lupin filed 5 ANDAs and received 5 ANDA approvals in the quarter. Cumulative ANDA filings with the US FDA now stand at 186 with the company having received 96 approvals to date. The Company received 5 approvals from European regulatory authorities in the quarter.
About Lupin Limited
Headquartered in Mumbai, Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations and APIs. The Company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, Anti-Infective and NSAID space and holds global leadership positions in the Anti-TB and Cephalosporin segment.
Lupin is the 5th largest and fastest growing generics player in the US (5.3% market share by prescriptions, IMS Health) and the 3rd largest Indian pharmaceutical company by sales. The Company is also the fastest growing top 10 generic pharmaceutical players in Japan and South Africa (IMS).
For the financial year ended March 2013, Lupin's Consolidated Total Income and Profit after Tax were Rs. 94,616 million (USD 1.74 billion) and Rs. 13,142 million (USD 242 million) respectively. Please visit http://www.lupinworld.com for more information.
For further information or queries please contact -
Shamsher Gorawara
Head - Corporate Communications
Lupin Limited:
Ph: +91-98-20-338-555
Email: shamshergorawara@lupinpharma.com
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