Date:17/03/2004 URL: http://www.thehindubusinessline.com/2004/03/17/stories/2004031701310300.htm

Back Lupin gets A1 rating for short-term debt programme

Our Bureau

New Delhi , March 16

ICRA has assigned an `A1' rating to Lupin Ltd's Rs 40-crore short-term debt programme (including commercial paper). Indicating the highest safety in the short term, the rating takes into account Lupin's thrust on research and development (R&D), its increasing focus on exports to regulated markets and improved cash accruals.

During the current fiscal, according to an ICRA statement here, Lupin improved its operating margin to 24 per cent, resulting in an overall cash accrual of Rs 141.1 crore for the first nine months. The improvement in margin is due to increased exports, which contributed 49 per cent of the revenue during the period. The company has also reduced its gearing through debt repayments of Rs 272.7 crore, including pre-payments of Rs 196 crore during the first nine months of the current fiscal.

During the year, CVC International, the private equity arm of the Citi Group, acquired a stake in Lupin.