Lupin (500257) Q4 01/02 earnings summary

Executive summary

• FY 2001-02 delivered record pre-tax profit of Rs 96.38 cr, supported by revenue growth, lower costs and stronger exports to higher-value markets.

• Pune Research Park began operations, generic sales advanced in the US and Europe, and the oral cephalosporin plant was commercialised.

Financial highlights

• Sales rose to Rs 956.87 cr from Rs 902.85 cr; total income was Rs 965.32 cr, including Rs 8.45 cr other income.

• Exports increased 34% to Rs 309.85 cr; operating profit (PBIDT) grew 27% to Rs 181.75 cr.

• PBT reached Rs 96.38 cr versus Rs 65.02 cr; net profit was Rs 72.18 cr after Rs 17.20 cr deferred tax, versus Rs 60.02 cr.

• EPS was Rs 17.67 versus Rs 14.57; proposed total equity dividend was Rs 5 per share versus Rs 3.50.

Outlook and guidance

• FY 2002-03 topline and bottomline growth momentum was expected to accelerate; at least three additional ANDA filings were planned.

• Future investment was expected to be limited mainly to balancing equipment and minor projects; cash accruals were targeted for debt repayment, lower interest outflow and balance-sheet strengthening.

• Formulations plans emphasized cardiovasculars, NSAIDs, psychiatric, diabetic and diagnostics therapies, alongside expanded generics exposure and low-cost manufacturing.

• Bulk intermediates were expected to improve performance in 2002-03, with API capacity expansion and separate teams for specialty and commodity products.