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Lupin Q2 profit up 55%, misses topline EBITDA estimates

The News International Team

Pharmaceutical firm  Lupin beat street expectations on the bottomline front in second quarter but missed estimates on topline and operational front. Consolidated net profit of the drug maker jumped 55 percent year-on-year to Rs 630 crore during the quarter led by growth in formulations, US and domestic businesses, and also due to higher other income and lower tax cost. Profit in the-year ago period was Rs 406.2 crore.

Consolidated revenue grew by 18.9 percent to Rs 3,173 crore in the quarter ended September 2014 compared to Rs 2,668 crore in corresponding quarter of last fiscal.

Profit was expected at Rs 550 crore on revenue of Rs 3,270 crore for the quarter, according to the average of estimates of analysts polled by CNBC-TV18.

Operating profit (earnings before interest, tax, depreciation and amortisation) climbed 26.2 percent on yearly basis to Rs 833 crore and margin expanded by 150 basis points to 26.2 percent as against analysts’ expectations of Rs 896 crore and 27.4 percent, respectively.

Other income (including forex gain) shot up 35.5 percent year-on-year to Rs 110.24 crore while tax expenses declined 25.4 percent to Rs 192.56 crore in the quarter gone by.

Lupin said its US and Europe formulation sales (including IP) grew by 23 percent on yearly basis to Rs 1,359.2 crore during Q2FY15, contributing 44 percent to overall sales. Total formulations business reported a 19 percent growth at Rs 2,799 crore and India formulations business rose by 20 percent to Rs 799 crore, it added.

Japan sales (Kyowa and I’rom) climbed 12 percent Y-o-Y to Rs 345.9 crore and rest of the world business spiked 16 percent to Rs 188.7 crore while Lupin’s South African business subsidiary Pharma Dynamics clocked in sales of Rs 105.7 crore in second quarter, growing by 5 percent.

The company’s API business recorded sales of Rs 318.3 crore during the quarter, growing by 11 percent compared to Rs 286.2 crore in the year-ago period.

Profit during April-September FY15 surged 55.44 percent year-on-year to Rs 1,254.78 crore on revenue of Rs 6,514.22 crore (up 26.6 percent).

“We have had a great first half driven by strong growth in US, India, Japan and our API business. Our research pipeline is evolving well and we expect significant developments in the dermatology and inhalation space in the quarters to come,” said Nilesh Gupta, managing director.

At 15:08 hours IST, the stock was quoting at Rs 1,358, down Rs 36.05, or 2.59 percent on the BSE.


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