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Lupin: Niche products boost business growth - Views on News from Equitymaster
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Lupin: Niche products boost business growth
Jun 15, 2016

Lupin has announced its 4QFY16 results. Net sales have grown by 38.6% YoY, while net profits surged by 54.8% YoY. Here is our analysis of the results.

Performance summary
  • Topline, including other operating income, grows by 35.8% YoY led by growth across all major segments. The company has also consolidated its recent acquisitions in US (Gavis) and Germany (Temmler).
  • Better product mix, with low competition launches in the US help in better operating margins. On YoY basis, operating margins improve by 7.1%.
  • Net profits increase by 54.8% YoY for the quarter, lower than the growth in operating profits, on account of surge in tax expenses.

    Financial performance: A snapshot
    (Rs m) 4QFY15 4QFY16 Change FY15 FY16 Change
    Net sales 30,540 40,913 34.0% 125,997 137,016 8.7%
    other operating income 241 899 273.0% 1,703 5,069 197.7%
    Expenditure 22,887 28,138 22.9% 91,504 104,550 14.3%
    Operating profit (EBDITA) 7,894 13,674 73.2% 36,196 37,535 3.7%
    EBDITA margin (%) 25.6% 32.7% 28.3% 26.4%
    Other income 172 654 280.2% 2,397 1,877 -21.7%
    Interest (net) 25 229 816.0% 98 447 356.1%
    Depreciation 1,071 1,446 35.0% 4,347 4,635 6.6%
    Profit before tax 6,970 12,653 81.5% 34,148 34,330 0.5%
    Minority Interest 137 51 413 88
    Tax 1,363 4,132 203.2% 9,703 11,535 18.9%
    Profit after tax/(loss) 5,470 8,470 54.8% 24,032 22,707 -5.5%
    Net profit margin (%) 17.9% 20.7% 19.1% 16.6%
    No. of shares (m) 447.1
    Diluted earnings per share (Rs) 50.8
    Price to earnings ratio (x)* 28.2

    *based on trailing 12 months earnings

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