Mumbai: Drug maker Lupin Ltd on Thursday posted record profit and sales for the quarter ended 31 December, beating analysts’ forecasts, as it benefited from strong demand in overseas markets.
India’s fourth largest drug maker reported a 42.6% increase in profit as exports grew substantially in the three months. Profit rose to Rs.335.2 crore from Rs.235.1 crore a year ago.
Revenue grew 37.6% to Rs.2,465.9 crore from Rs.1,791.7 crore.
“We had a record quarter, driven by strong operating performance and growth in the US,” managing director Kamal Sharma said. “Importantly, we continue to improve on margins consistently.”
Shares of Lupin rose 0.87% to close at Rs.604.45 on a day BSE’s benchmark Sensex fell 0.55% to 19,894.98 points.
“Lupin came in with strong numbers and the results were above our and Street expectations,” said Hitesh Mahida, an industry analyst with Fortune Equity Brokers (India) Ltd.
Higher-than-estimated sales in the US market boosted the company’s revenue, said Mahida.
Sales of formulations in the US and Europe contributed 44% of the company’s overall consolidated revenue in the quarter. Formulation sales in these markets grew by 60% to Rs.1,082.9 crore during the period from last year’s Rs.676.3 crore.
US sales alone grew by 68% to Rs.1,039 crore from a year ago. During the quarter, Lupin launched five products in the US market, where it is among the top three by market share in most generic drug segments.
The India formulations business contributed 23% of the company’s overall revenue in the quarter. Lupin’s domestic business grew 14%, with net revenue of Rs.570.8 crore during the period.
The company also performed well in its second largest export market—Japan, which contributed 15% of total revenue. Lupin’s revenue from Japan grew 48%; it clocked net sales of Rs.365.8 crore in Japan during the quarter.
“Crossing the Rs.300 crore mark in net profit was certainly a significant milestone for the company, although the growth in sales and profits were also the highest so far, making it a record quarter for the company,” said managing director Sharma.
An ongoing programme to enhance operational efficiency has led to improvement in average profitability to as high as 21%, which has helped the growth in profit. “The substantial increase in anti-infective sales in the US this quarter was one of the key factors that helped our sales growth in the US along with the three new product launches,” Sharma said in a telephone interview on Thursday.