Date:26/01/2005 URL: http://www.thehindubusinessline.com/2005/01/26/stories/2005012602290200.htm

Back Research costs drill a hole in Lupin's Q3 profits

Our Bureau

Mumbai , Jan. 25

LUPIN Ltd has reported a 39 per cent dip in its profits for the three-month-period ended December 31, 2004, due to promotional and research expenses.

The company has clocked a net profit of Rs 24.5 crore for the third quarter compared with Rs 40 crore for the corresponding period in the previous year.

During the third quarter, the company incurred an expense of Rs 8.1 crore on account of Suprax sales promotion in the US. Suprax is Lupin's brand of antibiotic drug Cefixime that was launched in the US early last year. Also, research and development spent during the quarter increased from Rs 9.9 crore to Rs 18.2 crore in the current year, a company communiqué said.

Lupin's third quarter net sales increased by 10 per cent to Rs 279.6 crore from Rs 254.3 crore in the corresponding period last year.

The quarter also saw domestic revenues increase by 11 per cent to Rs 146.4 crore from Rs 131.4 crore a year ago. Of this, revenues from the domestic sales of finished forms of medicine increased by 15 per cent to Rs 113.9 crore from Rs 99 crore.

Export revenues increased by 8 per cent to Rs 133.2 crore (Rs 122.9 crore). Of this, exports of active pharmaceutical ingredients in the developed markets increased by 26 per cent to Rs 42 crore from Rs 33.4 crore.

For the nine-month-period ended December 31, 2004, Lupin recorded a net sales growth of 3 per cent at Rs 871.9 crore (Rs 846.4 crore). Net profit in this period was Rs 62.6 crore (Rs 69 crore).