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Lupin slips after Q4 results

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Capital Market
Last Updated : May 08 2014 | 12:02 AM IST

Lupin fell 0.41% to Rs 998.05 at 14:41 IST on BSE after the company announced Q4 result during trading hours today, 7 May 2014.

On BSE, so far 1.74 lakh shares were traded in the counter, compared with an average daily volume of 56,229 shares in the past one quarter.

The stock was volatile. The stock rose as much as 1.98% at the day's high of Rs 1,022 so far during the day, which is a record high for the counter. The stock lost as much as 0.82% at the day's low of Rs 993.90 so far during the day. The stock had hit a 52-week low of Rs 695.10 on 6 May 2013.

The stock had outperformed the market over the past one month till 6 May 2014, advancing 2.68% compared with the Sensex's 0.67% rise. The scrip had, however, underperformed the market in past one quarter, advancing 10.27% as against Sensex's 10.82% rise.

The large-cap company has equity capital of Rs 89.69 crore. Face value per share is Rs 2.

On a consolidated basis, Lupin's net profit surged 35.51% to Rs 553 crore on 20.67% growth in total income from operations to Rs 3120.53 crore in Q4 March 2014 over Q4 March 2013.

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Lupin's operating profit jumped 33.2% to Rs 876.90 crore in Q4 March 2014 over Q4 March 2013. The operating profit margin (OPM) edged up to 28.7% in Q4 March 2014, from 26% in Q4 March 2013.

On a consolidated basis, net profit rose 39.73% to Rs 1836.37 crore on 25.5% growth in total income from operations to Rs 8939.38 crore in the year ended 31 March 2014 over the year ended 31 March 2013.

Lupin said its material cost decreased by 3.5% to 32.1% of net sales, at Rs 980.40 crore during Q4 March 2014 as compared to Rs 904.40 crore in Q4 March 2013.

Manufacturing and other expenses increased by 1.6% to 28.6% of net sales at Rs 873.60 crore during Q4 March 2014 as compared to Rs 684.30 crore during Q4 March 2013.

Personnel cost decreased by 0.5% to 12.8% of net sales, at Rs 389.60 crore during Q4 March 2014, as against Rs 338.60 in Q4 March 2013.

Revenue expenditure on R&D stood at 8% of net sales at Rs 245.60 crore during Q4 March 2014, as compared to Rs 199.90 crore in Q4 March 2013.

Operating working capital increased to Rs 2815.80 crore as on 31 March 2014 as against Rs 2769.50 crore as on 31 December 2013. The working capital number of days stands at 92 days as on 31 March 2014 as against 94 days on 31 December 2013.

US and Europe formulation sales (including IP) grew by 29% to Rs 5180.50 crore during the year ended March 2014 (FY 2013-14), as against Rs 4005.10 crore in the year ended March 2013 (FY 2012-13), contributing 47% to overall sales. US brands business contributed 10% of total US sales whereas the generics business was the balance 90% during FY 2013-14.

The Indian market contributed 22% of the company's overall revenues for FY 2013-14. The India formulations business grew by 5% recording revenues of Rs 2479.50 crore for FY 2013-14 as compared to Rs 2364.40 crore for FY 2012-13.

Lupin's Japanese business (Kyowa + I'rom) clocked net sales of Rs 1295.50 crore during FY 2013-14 and contributed 11% to the company's consolidated revenues. Revenues in Yen term grew 8% to JPY 21,399 million during the year from JPY 19,785 million.

ROW markets grew by 23% to Rs 637.10 crore during FY 2013-14 contributing 6% to Lupin's consolidated revenues.

Lupin's South African subsidiary, Pharma Dynamics clocked in revenues of Rs 380 crore in FY 2013-14 as compared to Rs 321 crore during FY 2012-13, a growth of 18%.

Active Pharmaceutical Ingredients (API) sales grew by 17% to Rs 1114 crore during FY 2013-14 contributing to 10% to Lupin's consolidated revenues. The sales during Q4 March 2014 grew by 20% to Rs 291.40 crore from Rs 243.60 crore during Q4 March 2013.

Revenue expenditure on research and development (R&D) for FY 2013-14 amounted to Rs 929.40 crore, 8.4% of net sales as against Rs 709.80 crore, 7.5% of net sales for FY 2012-13. Revenue expenditure on R&D for Q4 March 2014 amounted to Rs 245.60 crore, 8% of net sales as against Rs 199.90 crore, 7.9% to net sales in Q4 March 2013.

Lupin filed 7 ANDAs and received 3 approvals from the US FDA during the quarter. During the year, the company filed 19 ANDA's and received 22 approvals. Cumulative ANDA filings with the US FDA as of March 31st, 2014 stood at 192 with the company having received 99 approvals to date. To date, the Company has 31 First-to-Files include 15 exclusive ones.

The company filed 4 MAAs (Marketing Authorisation Applications) with European regulatory authorities and has received 2 approvals during the quarter. Cumulative filings with European authorities now stand at 57 with the company having received 48 approvals to date.

Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations and APIs globally.

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First Published: May 07 2014 | 2:47 PM IST

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