Lupin (500257) Q4 99/00 earnings summary

Executive summary

• Eight-month period ended Mar. 31, 2000: sales/operational income Rs. 6,617.42 lacs and PAT Rs. 208.38 lacs; results are not directly comparable with the prior 12-month period.

• Rifampicin remained the main product; a commissioned captive power plant improved power reliability, while higher fuel and input costs and lower selling prices compressed margins.

Financial highlights

• Sales/operational income was Rs. 6,617.42 lacs vs. Rs. 11,038.10 lacs in the prior 12 months; other income was Rs. 223.87 lacs vs. Rs. 452.11 lacs.

• Operating profit before interest, depreciation and tax was Rs. 1,819.06 lacs; PBT Rs. 363.38 lacs and PAT Rs. 208.38 lacs, vs. prior-year PBT Rs. 1,313.22 lacs and PAT Rs. 1,249.22 lacs.

• Interest was Rs. 1,071.86 lacs and depreciation Rs. 383.82 lacs; tax provision was Rs. 155 lacs, based on profits for the 12 months ended Mar. 31, 2000.

• Recommended dividend of 10%, absorbing Rs. 335.51 lacs, excluding dividend tax.

Outlook and guidance

• Rifampicin expected to remain the principal product; priorities were productivity gains, cost reduction and building share in higher-margin markets.

• Plans called for expanding Tarapur R&D and participating in Lupin Group’s Pune R&D laboratory, with a target of adding at least one product every two years.