Lupin spurts after strong sequential Q3 earnings

Lupin rose 9.01% to Rs 1,802 at 15:17 IST on BSE after the company reported strong sequential results during trading hours today, 5 February 2016.

Meanwhile, the BSE Sensex was up 256.41 points, or 1.05%, to 24,594.84.

On BSE, so far 4.03 lakh shares were traded in the counter, compared with an average volume of 56,843 shares in the past one quarter. The stock hit a high of Rs 1,815.85 and a low of Rs 1,603.20so far during the day. The stock hit a record high of Rs 2,127 on 6 October 2015. The stock hit a 52-week low of Rs 1,540 on 10 February 2015. The stock had underperformed the market over the past one month till 4 February 2016, sliding 8.10% compared with 5.01% decline in the Sensex. The scrip had also underperformed the market in past one quarter, falling 11.15% as against Sensex's 8.34% fall.

The large-cap company has an equity capital of Rs 90.11 crore. Face value per share is Rs 2.

Lupin's consolidated net profit rose 29.6% to Rs 529.80 crore on 7.1% growth in revenue from operations (net) to Rs 3555.80 crore in Q3 December 2015 over Q2 September 2015. Operating profit surged 30.5% at Rs 877.20 crore in Q3 December 2015 over Q2 September 2015. The operating profit margin (OPM) edged up to 24.66% in Q3 December 2015 from 20.23% in Q2 September 2015.

Consolidated net profit fell 11.9% to Rs 529.80 crore on 11.9% growth in revenue from operations (net) to Rs 3555.80 crore in Q3 December 2015 over Q3 December 2014. Operating profit fell 0.7% to Rs 877.20 crore in Q3 December 2015 over Q3 December 2014. The OPM fell sharply to 24.66% in Q3 December 2015 from 27.78% in Q3 December 2014. The result was announced during market hours today, 5 February 2016.

US formulation sales (excluding intellectual property) increased by 21.4% over Q2 September 2015 (sequentially) and 1.8% over Q2 September 2014 (YoY). Japan business grew by 9.2% YoY and 15.6% sequentially. India business grew by 17.1% YoY and declined 0.3% sequentially.

Material cost increased by 0.9% to 33.4% of net sales, at Rs 1123 crore during Q3 December 2015 as compared to Rs 1023.50 crore in Q3 December 2014.

Manufacturing and other expenses increased by 3.4% to 30.6% of net sales at Rs. 1027.20 crore during Q3 December 2015 as compared to Rs 855.30 crore in Q3 December 2014.

Personnel cost increased by 2.5% to 15.7% of net sales, at Rs 528.40 crore during Q3 December 2015, as compared to Rs 415.90 crore in Q3 December 2014.

Revenue expenditure on research and development (R&D) stood at 11.7% of net sales at Rs 391.60 crore during Q3 December 2015, as compared to Rs 260.50 during Q3 December 2014.

Lupin is a pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and APIs globally. 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.

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