Lupin (500257) Q4 02/03 earnings summary

Executive summary

• FY 2002-03 gross sales rose 17% to Rs. 1,120.05 crore; net profit was Rs. 73.07 crore after Rs. 3.61 crore of prior-year income tax.

• Export growth and API performance offset a sluggish domestic formulations market; exports reached Rs. 412.77 crore, up 33% YoY.

• Strategic emphasis remained on APIs, complex generics and R&D, with North America and Europe positioned as future growth drivers.

Financial highlights

• Gross sales Rs. 1,120.05 crore, up 17%; net sales Rs. 1,030.15 crore, versus Rs. 867.38 crore in FY 2001-02.

• Operating profit (PBIDT) Rs. 183.48 crore; PBT Rs. 97.06 crore; profit after tax before prior-year tax Rs. 76.68 crore.

• Net profit Rs. 73.07 crore versus Rs. 72.18 crore; includes Rs. 3.61 crore income tax for earlier years.

• Exports Rs. 412.77 crore versus Rs. 309.85 crore; 37% of sales versus 32% in FY 2001-02.

Outlook and guidance

• Advanced markets in North America and Europe are expected to drive future growth; sales to advanced markets exceeded Rs. 100 crore in FY 2002-03.

• Targeting six to eight new filings annually in advanced markets and complex generics selected to limit competition and support sustainable business.

• Lovastatin API facility at Tarapur was expected to become operational in Q2 FY 2003-04.

• Value-added domestic products and new therapeutic launches were expected to support incremental revenue in FY 2003-04.