Lupin hits record high after strong Q1 results

Lupin rose 5.18% to Rs 1,176.70 at 14:48 IST on BSE after the company announced strong Q1 June 2014 results during trading hours today, 30 July 2014.

Meanwhile, the BSE Sensex was up 56.09 points, or 0.22%, to 26,047.32.

On BSE, so far 3.45 lakh shares were traded in the counter, compared with an average volume of 58,816 shares in the past one quarter.

The stock hit a high of Rs 1,192.10 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,113.20 so far during the day. The stock hit a 52-week low of Rs 742.30 on 28 August 2013.

The stock had outperformed the market over the past one month till 28 July 2014, rising 6.78% compared with 3.55% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 11.95% as against Sensex's 14.84% rise.

The large-cap company has an equity capital of Rs 89.71 crore. Face value per share is Rs 2.

On a consolidated basis, Lupin's net profit grew by 55.8% to Rs 624.70 crore on 35.7% rise in net sales to Rs 3284 crore in Q1 June 2014 over Q1 June 2013.

Lupin's operating profit jumped 89.1% to Rs 1114.80 crore in Q1 June 2014 over Q1 June 2013. The operating profit margin (OPM) edged up to 33.9% in Q1 June 2014, from 24.4% in Q1 June 2013.

PBT (profit before tax) grew by 65.8% to Rs 1032.50 crore in Q1 June 2014 over Q1 June 2013.

Commenting on the results, Nilesh Gupta, Managing Director, Lupin, said, "We have had a great start to the year. Business is at an all time high with record revenues and profits driven by strong growth in the US and in India. We are doing well in all our businesses and focus on operational efficiencies and manufacturing excellence is helping us deliver even stronger margins."

Material cost decreased by 2.4% to 33.7% of net sales at Rs 1107.40 crore in Q1 June 2014 over Q1 June 2013.

Manufacturing and other expenses decreased by 6.6% to 21.6% of net sales at Rs 708.30 crore in Q1 June 2014 over Q1 June 2013.

Personnel cost decreased by 1.1% to 12.5% of net sales at Rs 410.30 crore in Q1 June 2014 over Q1 June 2013.

Revenue expenditure on R&D stood at 7.4% of net sales at Rs 243.90 crore in Q1 June 2014 over Q1 June 2013.

US formulation sales (including IP) grew by 57% to Rs 1605.50 crore in Q1 June 2014 over Q1 June 2013, contributing 49% to overall sales.

Lupin's India business grew by 29% recording net revenues of Rs 761.50 crore in Q1 June 2014 over Q1 June 2013.

Lupin's Japan Sales (Kyowa + I'rom) grew by 17% clocking net sales of Rs 341.50 crore in Q1 June 2014 over Q1 June 2013.

Rest of the World Markets (ROW) sales grew by 4% to Rs 127.10 crore in Q1 June 2014 over Q1 June 2013.

APIs (active pharmaceutical ingredients) sales grew by 20% to Rs 292.50 crore in Q1 June 2014 over Q1 June 2013.

Revenue expenditure on R&D for Q1 June 2014 amounted to Rs 243.90 crore, 7.4% of net sales, as against Rs 195.60 crore, 8.1% to net sales in Q1 June 2013. Lupin filed 8 ANDAs and received 4 approvals from the US FDA during the quarter. Cumulative ANDA filings with the US FDA as of 30 June 2014 stood at 200 with the company having received 103 approvals to date.

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 top 5 generics player in the US (5.3% market share by prescriptions, IMS Health) and the third largest Indian pharmaceutical company by sales. The company is also the fastest growing top 10 generic pharmaceutical players in Japan and South Africa (IMS).

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