Pharmaceutical firm Lupin surpassed street expectations with the third quarter (October-December) net profit rising 42 per cent, driven by strong business growth in the US.
“Other markets like India are getting back on track also. Our consistent focus on ramping up operational efficiencies has led to higher margins and better profitability,” Nilesh Gupta, managing director said.
Net profit increased to a record level of Rs. 476.1 crore as against Rs. 335.2 crore in same quarter last year while revenue grew 20.8 per cent year-on-year to Rs. 3,022 crore in the quarter gone by.
Analysts had estimated net profit of Rs. 452 crore on revenues of Rs. 2,848 crore for the quarter. US formulation sales including IP (which contributed 45 percent to total sales) grew 31 per cent to Rs. 1,356.7 crore during Q3FY14. In dollar terms, US formulations revenues increased 12 per cent year-on-year to USD 215 million during December quarter, the company said in its filing.
The company launched 5 products in the US during the quarter and now has 62 products in the market. Revenues from Indian formulations business, which contributed 22 percent of overall revenues, rose 14 per cent to Rs. 650.4 crore as compared to Rs. 570.8 crore in same quarter last year.
Its Japan sales (Kyowa + I’rom) climbed 2 per cent at Rs. 372 crore while South African business and Pharma Dynamics clocked in revenues of Rs. 98.3 crore, a growth of 18 per cent compared to year ago period.
Rest of world sales, which accounted 5 per cent of total revenues, grew 27 per cent to Rs. 142.2 crore during December quarter. Earnings before interest, tax, depreciation and amortisation jumped 27.8 per cent on yearly basis to Rs. 773 crore and operating profit margin expanded 140 basis points to 25.6 per cent during October-December quarter.