Lupin expects India sales to grow 18-20 pct in fiscal 2015; net profit jumps

MUMBAI Wed Jul 30, 2014 3:21pm IST

An employee of Lupin Limited works at a reception at their headquarters in Mumbai November 22, 2013. REUTERS/Danish Siddiqui/Files

An employee of Lupin Limited works at a reception at their headquarters in Mumbai November 22, 2013.

Credit: Reuters/Danish Siddiqui/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Drugmaker Lupin Ltd (LUPN.NS) expects its local business to grow between 18 and 20 percent this fiscal year, its chief executive said, after higher sales in the domestic market helped it post a 56 percent jump in quarterly net profit.

India, which made up nearly a fourth of Lupin's total sales in the June quarter, was a drag on its earnings in January-March as many of the company's drugs fell under the federal government's price cap order of last year.

India sales grew 29 percent in the quarter ended June, its fiscal first quarter, the company said on Wednesday.

Lupin, India's fourth-largest generic drugmaker by sales, has been on the lookout for acquisitions that would enhance its branded generics business in the United States, its biggest market.

Lupin is one of several firms planning to bid for a portfolio of older drugs being auctioned by Britain's GlaxoSmithKline Plc (GSK.L), sources familiar with the matter told Reuters last week.

"We are continuously on the lookout for opportunities that enhance our technology capabilities," Chief Executive Vinita Gupta said. She declined to comment on the GlaxoSmithKline auction.

PROFIT BEATS ESTIMATES

Lupin reported a first-quarter net profit of 6.25 billion rupees ($103.92 million), compared with 4.01 billion rupees a year earlier. Analysts on average expected a profit of 5.10 billion rupees, according to Thomson Reuters data.

Net sales rose 36 percent to 32.84 billion rupees, helped largely by a 57 percent jump in its formulation business in the United States, which accounted for 49 percent of its sales in the June quarter.

Rival Dr Reddy's Laboratories Ltd (REDY.NS), India's No.2 drugmaker by sales, on Wednesday reported a 52 percent jump in net profit to 5.5 billion rupees, in line with estimates, as its North American sales rose 51 percent in the June quarter.

Lupin's shares were up 4.5 percent at 1,169.35 rupees at 0935 GMT, while those of Dr Reddy's were up 1.7 percent at 2,817.20 rupees. The Nifty was up 0.5 percent.

($1 = 60.14 rupees)

(Editing by Sumeet Chatterjee and Matt Driskill)

FILED UNDER:

Fast-tracking Projects

REUTERS SHOWCASE

Oil Prices

Oil Prices

Oil resumes slide after brief rebound on short-covering.  Full Article 

Space Programme

Space Programme

ISRO tests its heaviest space launch vehicle, eyes global market   Full Article 

Coal India Strike

Coal India Strike

Coal India workers threaten five-day strike, stokes output worries  Full Article 

Gold Discount

Gold Discount

Dealers offer gold discount for first time in five months  Full Article 

Lakhvi Granted Bail

Lakhvi Granted Bail

Pakistan court bails man accused of masterminding Mumbai attack  Full Article 

GST Bill

GST Bill

Cabinet clears bill for nationwide goods and services tax.  Full Article 

Aviation Sector

Aviation Sector

Breakingviews: SpiceJet rescue is no fix for India aviation woes.  Full Article 

Global Economy

Global Economy

Fed confident on U.S. growth, opens door wider to rate hike.  Full Article 

Reuters Poll

Reuters Poll

BSE Sensex to hit 32,980 by December 2015  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage