Lupin (500257) Q4 97/98 earnings summary

Executive summary

• FY ended July 31, 1998 operating income rose to Rs.10,921.05 lacs; operating profit increased 27% and net profit rose 59% YoY.

• Rifampicin production expanded, while cost-reduction work and in-house R&D supported productivity and profitability.

Financial highlights

• Total income was Rs.1,108.18 million versus Rs.921.79 million in FY1996-97; sales were Rs.1,047.33 million and processing charges Rs.64.77 million.

• Profit before interest, depreciation and tax was Rs.297.56 million versus Rs.234.58 million; profit after tax was Rs.109.32 million versus Rs.68.65 million.

• Interest and finance charges rose to Rs.143.51 million from Rs.119.77 million; depreciation was Rs.44.72 million versus Rs.46.16 million.

• Proposed dividend was 10%, absorbing Rs.33.55 million; Rs.37 million was transferred to the Debenture Redemption Reserve.

Outlook and guidance

• Directors expected stronger performance in the current year, supported by productivity gains and continued cost-reduction measures.

• A captive power plant was under development to secure reliable, better-quality electricity at lower cost; new fermentation-based products were under evaluation.

• R&D plans included a multipurpose pilot plant, process optimisation of mutants in laboratory fermentors and improved recovery yields.