Lupin Ltd Q4 net profit at Rs 95.9 cr

Lupin Ltd beat street expectations for the year ended March riding on
exports, besides its domestic formulations and US brand businesses.
Net profit rose by an impressive 32.3% to Rs 408.25 crore as the
topline swelled 34.4% to Rs 2,706.4 crore.

The fiscal fourth quarter also saw a robust increase of 41% in topline
at Rs 750.4 crore. The newly acquired Kyowa and Novadigm contributed
Rs 82 crore in the quarter, albeit with lower margins.

Margins for the quarter were up YoY, but down sequentially at 16%.
Increase in the topline, improved margins and higher other incomes
drove the adjusted profit after tax to Rs 95.9 crore for Q4, marking a
robust growth of 349% YoY.

The strategic acquisition of Kyowa positions Lupin in Japan, the
second-largest pharmaceuticals market. Kyowa, with 10 product
approvals in Japan, has a potential $2.6 billion market, whereas
Novadigm's acquisition helps its CRAMS business in India. API revenues
showed a growth of 8% in developed countries but there was a 9%
decline in India.

Exports grew by a whopping 52% to Rs 1529.2 crore during the year. The
US brand business revenues grew by over 50%. Suprax with 50% growth is
a $37 million product and the launch of double-strength syrup and 400
mg tablet extends its franchise.

In Cefdinir, Lupin has a market share of 15%. With a basket of four
market leaders out of 15 products in the US, Lupin generates revenues
to the tune of $160 million. By prescriptions, Lupin is the third-
fastest growing generic pharma company and has also filed 11 ANDA
approvals in the US adding to the 30 ANDA approvals already pending.
Lupin targets $1 billion sales for FY09.

It is also the first to launch Cefpodoxime Proexitil in France,
thereby garnering a 75% market share. A few more additions are
expected in FY09. In Europe and Australia, it has filed seven and two
ANDAs, respectively. The Australian subsidiary has started
contributing to the revenues.

Looking at the business opportunities available in both domestic and
international markets and armed with the desired products, Lupin looks
promising. At Rs 644.40, the stock trades 12.9 times its FY08 earnings