Lupin Q2 net up 34% on strong growth in US

Lupin Q2 net up 34% on strong growth in US

Mumbai: Drugmaker Lupin’s quarterly net profit rose 34%, beating street estimates, on strong growth in the US generics and other overseas business.

The Mumbai-based pharma major on Monday reported a consolidated net profit of Rs215 crore on net sales of Rs1,405 crore for July-September.

A Reuters’ poll of 23 brokerages had forecast a consolidated quarterly net profit of Rs198 crore on net sales of Rs1,367 crore for Lupin.

Lupin’s sales in the US and Europe grew 46% in July-September to Rs516 crore, it said in a statement while its generics business in the US reported a 53% rise in revenue.

“On an average, we will definitely grow at 35% year on year (in US) in FY11, which is a very handsome growth," Kamal Sharma, managing director, told Reuters over the telephone.

The Mumbai-based drugmaker had reported about 37% rise in US sales to Rs1,65 crore in FY10.

It also managed to improve EBITDA margins in April-September to 21.5% versus 19.7 year ago, Sharma added.

“Operational costs are escalating but we are countering that with better quality of business," he said.

Lupin’s materials cost declined 6 percent in July-September while personnel cost rose 1 percent on year, it said in a statement.

The firm’s sales, general and administrative expenses remained consistent at 28 percent at Rs3.94 crore in July-September, it said.

The drugmaker’s business in India, South Africa and Japan rose between 16-28% in July-September, it said.

At 2:22pm, shares of Lupin were trading at 449.5 rupees, up 2.58 percent in a firm Mumbai market.