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Lupin, India’s fourth-largest drug maker by sales, posted a higher-than-expected profit in the first quarter of FY15, on the back of higher sales in the US and India.
Net profit grew 56 per cent to Rs 624 crore during the April-June quarter, up from Rs 401 crore in the year-ago period. Net sales grew 36 per cent to Rs 3,284 crore against Rs 2,420 crore in the first quarter of FY14.
US formulation sales expanded 57 per cent to Rs 1,605 crore in the June quarter of FY15, compared to Rs 1,026 crore in the corresponding quarter last year. US sales contributed 49 per cent to overall sales. Lupin’s India business grew 29 per cent, recording net revenues of Rs 762 crore compared to Rs 589 crore last year.
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Nilesh Gupta, managing Director of Lupin, said: “We have had a great start to the year. Business is at an all-time high with record revenues and profits driven by strong growth in the US and in India. We are doing well in all our businesses and focus on operational efficiencies and manufacturing excellence is helping us deliver even stronger margins.”
The company’s material cost decreased by 2.4 per cent to 33.7 per cent of net sales at Rs 1,107 crore compared to Rs 875 crore earlier. Manufacturing and other expenses also decreased by 6.6 per cent to 21.6 per cent of net sales at Rs 708 crore.
Rahul Shah of Motilal Oswal Securities said: “Lupin’s Q1 numbers were ahead of our estimates. Key growth drivers for FY15/FY16 would be strong product pipeline for the US, and higher contribution from oral contraceptives. Growth in India formulations is likely to rebound to 16 per cent in FY15.”
On Wednesday, shares of Lupin were closed at Rs 1,173.5, up by 4.9% on BSE.
