Lupin Sees Record Revenues And Net Profits In Q4FY13

Lupin has reported its highest ever revenues and profits in the fourth quarter of the 2012-13 fiscal, which stood at Rs 2537 crore, up 35% on a consolidated basis. Its net profit for the quarter was up by 157% to Rs 414 crore. This stupendous performance was aided by the rising sales in US, Europe and India.

The company has two main business segments, viz. formulations and API. API contributes about 10%, while rest comes from formulations. During the quarter, the revenues from the API segment grew moderately by 12% to Rs 949.8 crore. In formulations, the US revenues rose by 33% to USD 205 million (Rs 1146 crore).

During the quarter, Lupin launched 4 products in the US market which helped it put up a fantastic show. It has launched a total of 10 products over the course of the year. The European revenues have also remained strong, and the quarter saw a huge 45% jump in the revenues from the region.

The most sparking performance for the company was in the domestic formulations market, the revenues from which rose by 43% to Rs 565 crore. Such growth is huge indeed, indicating that the company's strategies are working on home turf.

The revenues from Japanese formulations have slowed down a little. The quarter has seen the revenues of Lupin’s subsidiaries I'rom and Kyowa rising by 2%. Kyowa's revenues have increased by 13%, which hints that I'rom Pharma may have seen decline in its revenues. For the full year, the Japanese revenues have increased by more than 50%.

In other markets too, the company’s revenues have increased by more than 30%. Overall, it has managed to log a hefty growth across all the territories.

Lupin has seen its material costs declining by 0.3% despite a 35% rise in sales. All other costs except for traded goods have grown slower than the sales, and hence, the company has reported an expansion in its EBITDA margins. The margins for the quarter stood at 25.47% against 19.38% a year ago.

The R&D expenditure for Q4FY13 stood at Rs.199 crore or 7.9% of its net sales. For the full year, the R&D expenditure stood at 7.2% of the net sales, which means that the company has invested more in research during this quarter than it did in the full year. Lupin has filed 8 ANDAs in these three months and has received 10 approvals from the US drug regulator. Over the year, it filed a total of 21 ANDAs and received 14 approvals.

Overall, the stock has maintained its growth momentum. The company is on a high growth path and one can look at investing in this counter with 6 months to 1 year horizon.