Lupin profit rises more than 50 percent on robust drug sales in US, India

Drug maker Lupin today reported an over 50 percent increase in its net profit for the quarter ended June 30, 2014 on account of robust sales in the US and India.

The company reported a 56 percent year-on-year increase in its net profit at Rs 625 crore in the first quarter of the current fiscal but was slightly impacted by higher tax expenses. According to CNBC-TV18 poll estimates, analysts had expected the company to report net profit of Rs 505 crore on revenue of Rs 3,075 crore for the quarter.

Net sales during the quarter grew 34.9 percent at Rs 3,340 crore compared to Rs 2,476.2 crore in the corresponding quarter of last fiscal.

“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,” said Nilesh Gupta, Managing Director.

Lupin reported 29 percent growth year-on-year at Rs 760 crore in its domestic business while its US business shot up 57 percent to Rs 1,605 crore in the quarter ended June 2014.

Japanese business remained strong for the second consecutive quarter, growing 17 percent to Rs 341.5 crore. During the quarter, revenue from its South Africa region jumped 16 percent at Rs 86.9 crore and rest of world business expanded by 4 percent at Rs 127.1 crore compared to the year-ago period while Europe business declined 7 percent on yearly basis to Rs 69 crore.

Lupin said its capex in the quarter was Rs 110 crore and it launched four products in the US during the quarter.

Tax expenses jumped 85.5 percent to Rs 402.94 crore during the quarter from Rs 217.16 crore in the year-ago period.

The company continues to enjoy ‘Debt Free’ status, it added.