Lupin (500257) Q4 98/99 earnings summary

Executive summary

• FY ended July 31, 1999: operating income rose to Rs. 11,038.10 lacs from Rs. 10,921.05 lacs; net profit increased 14.27% to Rs. 1,249.22 lacs despite a Rifampicin price cut and scheduled plant shutdown.

• Rifampicin production reached 206.646 MT; a new captive power plant was fully operational by end-August 1999, expected to reduce energy costs and support production.

Financial highlights

• Profit before interest, depreciation and tax rose to Rs. 3,321.29 lacs from Rs. 2,975.56 lacs; PBT was Rs. 1,313.22 lacs versus Rs. 1,093.23 lacs.

• PAT was Rs. 1,249.22 lacs versus Rs. 1,093.23 lacs; income-tax provision was Rs. 64 lacs versus nil in FY 1997-98.

• Total income was Rs. 11,490.21 lacs versus Rs. 11,081.76 lacs; sales were Rs. 10,449.52 lacs versus Rs. 10,473.33 lacs.

Outlook and guidance

• Captive power plant expected to lower energy costs, a major fermentation-industry cost component, and ensure uninterrupted, quality power for production.

• New fermentation-based products were under evaluation; plans included further fermentation-productivity gains, laboratory expansion and improved recovery yields.

• Y2K compliance was expected by September 1999, with estimated cost of Rs. 20 lacs.