Lupin

The company posted a good set of numbers for Q4FY14 and FY14 but the market probably expected more, which is why the stock dipped into the red post the numbers. It ended Q4FY14 with a 20% (YoY) rise in net sales at Rs.3051 crore and net profit grew by 355% at Rs.553 crore. The company maintained a good cost control and that showed in the EBITDA, which for the quarter was up 33% at Rs.882 crore. During the quarter, its raw material cost came down, so did manufacturing and personnel costs. Its revenue expenditure on R&D stood at 8% of net sales at Rs. 246 crore.

The company ended FY14 with a 17% rise in net sales at Rs.1109 crore and a 40% jump in net profit at Rs.1836 crore. US and Europe formulation sales (including IP) grew by 29%, contributing 47% to overall sales. US brands business contributed 10% of total US sales whereas the generics business was the balance 90% during FY14. Lupin is the market leader in 29 products marketed in the US generics market and is amongst the Top 3 by market share in 49 products. (IMS Health, December 2013). Its European revenues increased by 20% during Q4. The Indian market contributed 22% of the company’s overall revenues for FY14 and its rose 5%. Lupin’s Japanese business (Kyowa + I’rom) contributed 11% to its consolidated revenues. ROW markets grew by 23%, contributing 6% to Lupin’s consolidated revenues.  API sales grew by 17% in FY14, contributing to 10% its revenues.

The company filed 7 ANDAs and received 3 approvals from the US FDA during the quarter and in FY14, it 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.  In Europe, it filed 4 MAAs and received 2 approvals during Q4. Total filings with European authorities now stand at 57 with the company having received 48 approvals to date. The most gratifying part about the numbers – the company remains debt free.