Pharmaceutical major Lupin said on Tuesday that its net profit rose 9% to R290.5 crore for the second quarter of the financial year 2012-13, up from R266.9 crore a year ago, with strong sales growth across the major markets of India, the US and Europe.
Net sales grew 29% to R2,239.3 crore during the second quarter, up from R1,741.7 crore a year ago.
?We have had a record first half, driven by strong operating performance and sustained growth across all our business segments,” said Kamal Sharma, managing director, Lupin. “Our growth momentum continues.”
Earnings before interest, tax, depreciation and amortisation (Ebitda) grew 28% to R520.3 crore during the quarter under review, up from R405.7 crore a year ago.
US & Europe formulation sales, which contributed 38% to the company?s overall consolidated revenues, grew 40% to R835.5 crore. US formulation sales, including IP income, grew 21% to R781.8 crore compared to R648.6 crore a year ago. The European business grew 36%, while India formulations business grew 18% to R606.4 crore.
?Lupin has delivered a good set of numbers, above our estimates,? said Sarabjit Kaur Nangra, VP-research at Angel Broking. ?Sales across all businesses have gone up.?
The growth in Ebitda margins is the result of a reduction in R&D spend, she said. R&D spend for the quarter stood at 4.2% of net sales at R93.5 crore compared to R138 crore a year ago. ?I do not think there would be a progressive reduction in R&D since, for a company of Lupin’s size, R&D has to be around 6-7% of sales,? she added.
