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Record Sales & Profits – A New High Quarter IV & Annual Results - FY2016
Q4 FY2016 Net Sales up 34.0%, EBITDA up 72.7%, Net profit up 47.5%
Proposed Dividend 375%

 

Mumbai, May 19, 2016: Pharma Major Lupin Limited reported its performance for the fourth quarter and the financial year ending 31st March, 2016. These audited results were taken on record by the Board of Directors at a meeting in Mumbai today.

 

Key Financial & Performance Highlights

  

  • Net Sales for the quarter grew by 34.0% to Rs. 40,913 m., as compared to Rs. 30,540 m. in Q4 FY2015
    • Net Sales grew by 21.9% sequentially as compared to Rs. 33,577 m. in Q3 FY2016
    • FY2016: Net Sales were Rs. 137,016 m. as compared to Rs. 125,997 m. in FY2015
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) for the quarter was 34.0% of net sales growing by 72.7% to Rs. 13,928 m. as compared to Rs. 8,066 m. in Q4 FY2015
    • EBIDTA grew by 47.8% sequentially as compared to Rs. 9,425 m. in Q3 FY2016
    • FY2016: EBITDA was Rs. 39,412 m. as compared to Rs. 38,593 m in FY2015

 

  • Profit before Tax (PBT) for the quarter grew by 75.8% to Rs. 12,254 m. as compared to Rs. 6,970 m. in Q4 FY2015
    • PBT grew by 49.1% sequentially as compared to Rs. 8,219 m. in Q3 FY2016
    • FY2016: PBT was Rs. 34,330 m. as compared to Rs. 34,148 m. in FY2015
  • Net profits for the quarter grew by 47.5% to Rs. 8,071 m. as compared to Rs. 5,470 m. in Q4 FY2015
    • Net profits grew by 52.4% sequentially as compared to Rs. 5,298 m. in Q3 FY2016
    • FY2016: Net Profit was Rs. 22,707 m. for as compared to Rs. 24,032 m. in FY2015

 

  • Investment in Research for the quarter increased to 12.5% of net sales to Rs. 5,113 m
    • FY2016: Investment in research for the year was Rs. 16,038 m., 11.7% to net sales
  • The Board has proposed a dividend of 375% for FY2016

 

Business Performance (Refer to the Key Markets - Business Mix Section, Page 5)

  • US formulation sales for the quarter increased by 58.7% YoY and 55.7% sequentially
  • India sales for the quarter increased by 14.7 % YoY
  • Japan sales increased by 17% YoY
  • Record Filings & Approvals - 36 ANDA’s filed and 39 approvals during FY2016

Commenting on the results, Mr. Nilesh Gupta, Managing Director, Lupin Limited, said “We have had a stellar quarter driven by robust growth across all key markets, be it US, India or Japan. Record approvals and significant launches have enabled us to deliver the Company’s best results yet and we are back on the growth path. We continue to ramp up our investments in research and are focused on building pipelines in niche high-value areas such as Inhalation, Biosimilars and complex injectables. On the backdrop of our continued delivery on oral solids, this will drive our future growth globally.”

 

Consolidated Audited Financial Results - Quarter IV, FY2016
Figures in Rs. m

Particulars

Q4 FY2016

% of net sales

Q3 FY2016

% of net sales

QoQ growth %

Q4 FY2015

% of net sales

YoY growth %

Net sales

40,913

100.0%

33,577

100.0%

21.9%

30,540

100.0%

34.0%

Other operating income

899

2.2%

1,981

5.9%

-

241

0.8%

-

Total revenue

41,812

102.2%

35,558

105.9%

17.6%

30,781

100.8%

35.8%

 

 

 

 

 

 

 

 

 

Raw material consumed

10,737

26.2%

11,230

33.4%

-4.4%

9,563

31.3%

12.3%

Gross margin (excl. other operating income)

30,176

73.8%

22,347

66.6%

35.0%

20,977

68.7%

43.9%

 

 

 

 

 

 

 

 

 

Employees cost

5,691

13.9%

5,284

15.7%

7.7%

4,822

15.8%

18.0%

Manufacturing & other expenses

11,710

28.6%

10,272

30.6%

14.0%

8,502

27.8%

37.7%

Operating margin

13,675

33.4%

8,772

26.1%

55.9%

7,894

25.8%

73.2%

 

 

 

 

 

 

 

 

 

Other income

254

0.6%

653

1.9%

-61.1%

172

0.6%

47.7%

EBITDA

13,929

34.0%

9,425

28.1%

47.8%

8,066

26.4%

72.7%

 

 

 

 

 

 

 

 

 

Depreciation & Amortization

1,446

3.5%

1,114

3.3%

29.8%

1,071

3.5%

35.0%

EBIT

12,483

30.5%

8,311

24.7%

50.2%

6,995

22.9%

78.4%

 

 

 

 

 

 

 

 

 

Interest & finance charges

229

0.6%

92

0.3%

-

25

0.1%

-

PBT

12,254

30.0%

8,219

24.5%

49.1%

6,970

22.8%

75.8%

 

 

 

 

 

 

 

 

 

Tax

4,132

10.1%

2,909

8.7%

42.0%

1,363

4.5%

-

PAT

8,122

19.9%

5,310

15.8%

53.0%

5,607

18.4%

44.9%

 

 

 

 

 

 

 

 

 

Minority interest

51

0.1%

12

0.0%

-

137

0.4%

-

Net profit

8,071

19.7%

5,298

15.8%

52.4%

5,470

17.9%

47.5%

 

Consolidated Audited Financial Results - FY2016 (YoY comparison)
Figures in Rs. m


Particulars

FY2016

% of net sales

FY2015

% of net sales

YoY growth %

Net sales

137,016

100.0%

125,997

100.0%

8.7%

Other operating income

5,069

3.7%

1,703

1.4%

-

Total revenue

142,085

103.7%

127,700

101.4%

11.3%

 

 

 

 

 

 

Raw material consumed

43,094

31.5%

41,570

33.0%

3.7%

Gross margin (excl. other operating income)

93,922

68.5%

84,427

67.0%

11.2%

 

 

 

 

 

 

Employees cost

21,077

15.4%

17,473

13.9%

20.6%

Manufacturing & other expenses

40,379

29.5%

32,461

25.8%

24.4%

Operating margin

37,535

27.4%

36,196

28.7%

3.7%

 

 

 

 

 

 

Other income

1,877

1.4%

2,397

1.9%

-21.7%

EBITDA

39,412

28.8%

38,593

30.6%

2.1%

 

 

 

 

 

 

Depreciation & Amortization

4,635

3.4%

4,347

3.5%

6.6%

EBIT

34,777

25.4%

34,246

27.2%

1.5%

 

 

 

 

 

 

Interest & finance charges

447

0.3%

98

0.1%

-

PBT

34,330

25.1%

34,148

27.1%

0.5%

 

 

 

 

 

 

Tax

11,535

8.4%

9,704

7.7%

18.9%

PAT

22,795

16.6%

24,444

19.4%

-6.7%

 

 

 

 

 

 

Minority interest

88

0.1%

412

0.3%

-

Net profit

22,707

16.6%

24,032

19.1%

-5.5%

 

Profit & loss highlights

 

  • Material cost decreased by 5.1% to 26.2% of net sales, at Rs. 10,737 m. during Q4 FY2016, as compared to Rs. 9,563 m. during Q4 FY2015
  • Manufacturing and other expenses increased by 0.8% to 28.6% of net sales at Rs. 11,710 m. during Q4 FY2016, as compared to Rs. 8,502 m. during Q4 FY2015
  • Personnel cost decreased by 1.9% to 13.9% of net sales, at Rs. 5,691 m. for Q4 FY2016, as compared to Rs. 4,822 m. in Q4 FY2015
  • Revenue expenditure on R&D stood at Rs.5,113 m., 12.5% of net sales for the quarter

Balance sheet highlights

  • Operating working capital increased to Rs. 54,099 m. as on 31st March, 2016 as against Rs. 43,341 m. as on 31st December, 2015.  The working capital number of days stands at 143 days as on 31st March, 2016 as against 123 days on 31st December, 2015
  • Capital Expenditure stood at Rs. 3,713 m. during the quarter
  • Net Debt-Equity ratio for the company stands at 0.58:1

 

Business Segments - Sales Mix

Particulars

Q4 FY2016

Q3 FY2016

QoQ growth %

Q4 FY2015

YoY growth %

Formulations

38,075

30,817

23.6%

27,465

38.6%

US (including IP)

21,871

14,049

55.7%

13,779

58.7%

Europe

1,254

1,010

24.2%

891

40.7%

India

7,615

8,712

-12.6%

6,637

14.7%

Japan

3,442

3,739

-7.9%

2,943

17.0%

South Africa

1,135

1,048

8.3%

1,222

-7.1%

Rest of world

2,758

2,259

22.1%

1,993

38.3%

 

 

 

 

 

 

API

2,838

2,760

2.8%

3,075

-7.7%

Total net sales

40,913

33,577

21.9%

30,540

34.0%

 

fy 2016 pie chart

 

Particulars

FY2016

FY2015

YOY growth %

Formulations

124,942

114,056

9.5%

US (including IP)

59,407

56,576

5.0%

Europe

4,278

3,279

30.5%

India

33,916

29,679

14.3%

Japan

13,646

13,239

3.1%

South Africa

3,998

4,218

-5.2%

Rest of world

9,697

7,065

37.3%

 

 

 

 

API

12,074

11,941

1.1%

Total net sales

137,016

125,997

8.7%

 

fy 2016 pie chart

 

Operational Highlights

 

US and Europe
US and Europe formulation sales (including IP) grew by 57.6% to Rs. 23,125 m. during Q4 FY2016 as compared to Rs. 14,670 m. for Q4 FY2015; contributing 57% of the Company’s overall sales. US & Europe sales grew by 53.6% sequentially as compared to Q3 FY2016.

  • US sales increased by 54.3% to USD 325 m. for Q4 FY2016 as compared to USD 211 m. during Q4 FY2015. Sales grew by 56% sequentially as compared to Q3 FY2016
  • The Company launched 9 products in the US market during the quarter taking the number of total launches to 21 products during FY2016
  • Lupin now has 124 products in the market
  • Lupin is the market leader in 44 products marketed in the US generics market. The Company is amongst the Top 3 by market share in 79 products. (IMS Health, March, 2016)
  • Lupin’s Europe sales for the quarter increased by 40.7% to Rs. 1,254 m. as compared to Rs. 891 m. during Q4 FY2015

 

India
Lupin’s India sales grew by 14.7% to Rs. 7,615 m. during the quarter as compared to Rs. 6,637 m. for Q4 FY2015 and contributed 19% of the Company’s overall sales. The Company’s India business grew by 14.3% for FY2016.

Japan
Lupin’s Japanese business (Kyowa+KCC) grew by 17% recording sales of Rs. 3,442 m. during Q4 FY2016 as compared Rs. 2,943 m. during Q4 FY2015. Sales for the year increased by 3.1% to Rs.13,646 m. Sales in JPY terms increased by 4.8% to JPY 5,918 m. during Q4 FY2016 as compared to JPY 5,645 m. during Q4 FY2015. Kyowa grew by 5.7% to JPY 25,062 m. for FY2016.

Kyowa sales (excluding KCC) increased by 18.6% to Rs. 2,595 m., during Q4 FY2016 as compared to Rs. 2,188 m. during Q4 FY2015. Sales for the year increased by 3.1% to Rs. 10,538m. Sales in JPY terms for the quarter increased by 5.7% to JPY 4,451 m., as compared to JPY 4,211 m. during Q4 FY2015. FY2016 sales increased by 5.7% to JPY 19,353 m.

South Africa
Lupin’s South African subsidiary, Pharma Dynamics recorded sales of Rs. 1,135 m., as compared to Rs. 1,222 m. during Q4 FY2015. Sales grew by 8.3% sequentially as compared to Q3 FY2016. Q4 FY2016 sales increased by 13.2% to ZAR 258 m. as compared to ZAR 228 m. during Q4 FY2015. Sales grew by 15.7% sequentially as compared to Q3 FY2016. Sales increased by 9.9% to ZAR 835m during FY2016. The Company remains the 4th largest generic company in the South African market.

ROW Markets
The Company’s ROW markets clocked in sales growth of 38.3% to Rs. 2,758 m. in Q4 FY2016, up from Rs. 1,993 m in Q4 FY2015. Sales grew by 22.1% sequentially as compared to Q3 FY2016. Overall ROW Sales increased by 37.3% to Rs. 9,697 m. for FY2016.

API
Global API sales increased by 2.8% to Rs. 2,838 m., as compared to Rs. 2,760 m in Q3 FY2016.

R&D
Revenue expenditure on R&D for FY2016 amounted to Rs. 16,038 m., 11.7% of net sales as against Rs. 10,988 m., 8.7% of net sales for FY2015. Revenue expenditure on R&D for Q4 FY2016 stood at Rs. 5,113 m., 12.5% of net sales as against Rs. 3,916 m., 11.7% to net sales during Q3 FY2016 and Rs. 3,096 m., 10.1% of net sales during Q4 FY2015.  

Lupin filed 17 ANDAs and received 6 approvals from the US FDA during the quarter. The Company filed 36 ANDA’s and received 39 approvals during FY2016. Cumulative ANDA filings with the US FDA stood at 343, March 31st, 2016 with the company having received 180 approvals to date. The Company now has 45 First-to-Files (FTF) filings including 25 exclusive FTF opportunities.

The Company filed 6 MAAs with European regulatory authorities during Quarter.  Cumulative filings with European authorities now stand at 67 with the company having received 52 approvals to date.

 

About Lupin Limited
Headquartered in Mumbai, Lupin is an innovation led transnational pharmaceutical company producing and developing a wide range of branded & generic formulations, biotechnology products and APIs globally. 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 Cephalosporin segment.

Lupin is the 6th largest and fastest growing top 10 generics player in the US (5.5% market share by prescriptions, IMS Health) and the 3rd largest Indian pharmaceutical company by sales globally. The Company is also the fastest growing top 10 generic pharmaceutical players in Japan (ranked 9th) and South Africa (ranked 4th – IMS Health).

For the financial year ended 31st March 2015, Lupin's Consolidated turnover and Profit after Tax were Rs. 125,997 million (USD 2.06 billion) and Rs. 24,032 million (USD 393 million) respectively.

For more information, please contact –

 

Shamsher Gorawara
Head - Corporate Communications
Ph: +91-22- 98 20 338 555
Email: shamshergorawara@lupin.com

or

Alpesh Dalal
Head - M & A and Investor Relations
Lupin Limited
Ph: +91 98 20 023 511
Email: alpeshdalal@lupin.com

 

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