Wednesday, May 7, 2014
LUPIN LTD - RESULTS FOR - Q4 & FY 2013 14 - Q4 NET SALES UP 20.3%; NET PROFITS UP 35.5% - VERY GOOD PERFORMANCE- FUTURE MORE PROMISING
Q4 & FY 2013-14
Net Sales up 17.2%,
EBITDA up 35.8%,
Net profit up 39.7%
Net Sales up 20.3%,
Net Profits up 35.5%
Ø Net sales grew by 17.2% to Rs. 110,866 m. during FY 2013-14, up from Rs. 94,616 m. in FY 2012-13
Ø Q4, FY 2013-14: Net Sales grew by 20.3% to Rs. 30,515 m. during Q4 FY 2013-14, up from Rs.25,374 m. in Q4 FY 2012-13
Ø Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) grew by 35.8% Rs. 31,193 m. during FY 2013-14, up from Rs. 22,977 m. in FY 2012-13
Ø Q4, FY 2013-14: EBITDA grew by 32.7% to Rs. 8,821 m. during Q4 FY 2013-14, up from Rs. 6,649 m. in Q4 FY 2012-13
Ø Profit before tax (PBT) grew by 47.1% to Rs. 28,317 m. during FY 2013-14, up from Rs. 19,246 m. in FY 2012-13
Ø Q4, FY 2013-14: PBT grew by 52.2% to Rs. 7,956 m. during Q4 FY 2013-14, up from Rs. 5,226 m. in Q4 FY 2012-13
Ø Net profits grew by 39.7% to Rs. 18,364 m. during FY2013-14, up from Rs. 13,142 m. in FY 2012-13
Ø Q4, FY 2013-14 : Net Profits grew by 35.5% to Rs. 5,530 m. during Q4 FY 2013-14, up from Rs. 4,081 m. in Q4 FY 2012-13
The Board has proposed a final dividend of 150%, making it a total dividend of 300% for FY 2013-14
Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited, said “We have had another remarkable year fuelled by strong growth in key markets like the U.S., Europe, South Africa and in our API business. Importantly, we were able to improve operational efficiencies substantially. The year also marked our entry into high growth markets like Mexico and acquiring technology research capabilities that would help us address niche segments like Complex Injectables and Inhalation. "
Profit & loss highlights
Material cost decreased by 3.5% to 32.1% of net sales, at Rs. 9,804 m. during Q4 FY 2013-14 as compared to Rs. 9,044 m. during Q4 FY 2012-13.
Manufacturing and other expenses increased by 1.6% to 28.6% of net sales at Rs. 8,736 m. during Q4 FY 2013-14 as compared to Rs. 6,843 m. during Q4 FY 2012-13.
Personnel cost decreased by 0.5% to 12.8% of net sales, at Rs. 3,896 m. during Q4 FY 2013-14, as against Rs. 3,386 m. (Q4 FY 2012-13).
Revenue expenditure on R&D stood at 8% of net sales at Rs. 2,456 m. during Q4 2013-14, as compared to Rs. 1,999 m. during Q4 FY 2012-13.
Ø Operating working capital increased to Rs. 28,158 m. as on 31St March, 2014 as against Rs. 27,695 m. as on 31st December, 2013. The working capital number of days stands at 92 days as on 31st March, 2014 as against 94 days on 31stDecember, 2013.
Ø Capital Expenditure stood at Rs. 1,017 m. during the quarter.
Ø The Company continues to enjoy “Debt Free” status.
US and Europe
Formulation sales (including IP) grew by 29% to Rs. 51,805 m. during FY 2013-14, as against Rs. 40,051 m in FY 2012-13, contributing 47% to overall sales.
US brands business contributed 10% of total US sales whereas the generics business was the balance 90% during FY 2013-14.
Formulation sales (including IP) grew by 28% to Rs. 15,494 m. during Q4 FY 2013-14, as against Rs. 12,123 m in Q4 FY 2012-13, contributing 51% to overall sales.
US revenues increased by 18% to USD 241 m. during Q4 FY 2013-14 and by 16% to USD 803 m. for FY 2013-14.
5 products were launched in the US market during the quarter taking it to a total of 20 products during FY 2013-14. Lupin now has 72 products in the market.
Lupin is market leader in 29 products marketed in US generics market. The Company is amongst the Top 3 by market share in 49 products. (IMS Health, Dec, 2013).
Lupin’s European revenues increased by 20% during Q4 FY 2013-14.
Indian market contributed 22% of the company’s overall revenues for FY 2013-14. India formulations business grew by 5% recording revenues of Rs. 24,795 m. for FY 2013-14 as compared to Rs. 23,644 m. for FY 2012-13.
India formulations business contributed 19% of the Company’s overall revenues for Q4 FY 2013-14. The business grew by 2% recording net revenues of Rs. 5,763 m. during Q4 FY 2013-14, as compared to Rs. 5,659 m. in Q4 FY 2012-13.
Lupin’s Japanese business (Kyowa + I’rom) clocked net sales of Rs. 12,955 m. during FY 2013-14 and contributed 11% to the Company’s consolidated revenues. Revenues in Yen term grew 8% to JPY 21,399 m. during the year from JPY 19,785 m.
Japan Sales for Q4 FY 2013-14 grew by 17% clocking net sales of Rs. 3,218 m. as compared to Rs. 2,752 m. in Q4 FY 2012-13. Total revenues increased to JPY 5,353 m. for Q4 FY 2013-14 up from JPY 4,675 m. in Q4 FY 2012-13, a growth of 15% in JPY terms.
Kyowa revenues (excluding I’rom) increased to Rs. 9,637 m from Rs. 9,218 m in the previous year, a growth of 5%. Kyowa revenues (excluding I’rom) increased from JPY 13,984 m to JPY 15,918 m in FY 2013-14, recording a growth of 14%.
For the quarter, it grew by 5% to Rs. 2,405 m from Rs. 2,016 m in Q4 2012-13. In JPY terms, it grew by 14% to JPY 4,000 m from JPY 3,407 m in Q4 2012-13.
ROW markets grew by 23% to Rs. 6,371 m. during FY 2013-14 contributing 6% to Lupin’s consolidated revenues.
The sales during Q4 2013-14 grew by 38% to Rs. 2,059 m from Rs. 1,498 m during Q4 2012-13.
Lupin’s South African subsidiary, Pharma Dynamics clocked in revenues of Rs. 3,800 m. in FY 2013-14 as compared to Rs. 3,210 m. during FY 2012-13, a growth of 18%. Pharma Dynamics clocked in revenues of Rs. 1,067 m. during Q4 FY 2013-14, a growth of 18%. The Company remains the fastest growing and the 4th largest
generic company in the South African market with clear leadership in the cardiovascular space.
API sales grew by 17% to Rs. 11,140 m. during FY 2013-14 contributing to 10% to Lupin’s consolidated revenues.
The sales during Q4 2013-14 grew by 20% to Rs. 2,914 m from Rs. 2,436 m during Q4 2012-13.
Revenue expenditure on R&D for FY 2013-14 amounted to Rs. 9,294 m., 8.4% of net sales as against Rs. 7,098 m., 7.5% of net sales for FY 2012-13.
Revenue expenditure on R&D for Q4 FY 2013-14 amounted to Rs. 2,456 m., 8% of net sales as against Rs. 1,999 m., 7.9% to net sales in Q4 FY 2012-13.
Lupin filed 7 ANDAs and received 3 approvals from the US FDA during the quarter. During the year, the Company filed 19 ANDA’s and received 22 approvals. Cumulative ANDA filings with the US FDA as of March 31st, 2014 stood at 192 with the company having received 99 approvals to date. To date, the Company has 31 First-to-Files include 15 exclusive ones.
The Company filed 4 MAAs with European regulatory authorities and has received 2 approvals during the quarter. Cumulative filings with European authorities now stand at 57 with the company having received 48 approvals to date.
About Lupin Limited
Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded and generic formulations and APIs.
The Company is a significant player in the Cardiovascular, Diabetology, Asthma, Pediatric, CNS, GI, Anti-Infective and NSAID space and holds global leadership positions in the Anti-TB and Cephalospor in segment.
Lupin is the 5 th largest and fastest growing top 5 generics player in the US (5.3% market share by prescriptions, IMS Health) and the 3 rd largest Indian pharmaceutical company by sales. The Company is also the fastest growing top 10 generic pharmaceutical players in Japan and South Africa (IMS).
For the financial year ended March 2014, Lupin's Consolidated turnover and Profit after Tax were Rs. 110,866 million (USD 1.83 billion) and Rs. 18,364 million (USD 304 million) respectively.
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