COMPANY PROFILE

LUPIN PHARMACEUTICALS

SUBMITTED BY
TONY VARGHESE
MBA B & F
SEMESTER 3

INTRODUCTION
Lupin Pharmaceuticals, Inc. is the U.S. wholly owned subsidiary of Lupin Limited, which is
among the top five pharmaceutical companies in India. Through our sales
and marketing headquarters in Baltimore, MD, Lupin Pharmaceuticals, Inc. is dedicated to
delivering high-quality, branded and generic medications trusted by healthcare professionals
and patients across geographies.
Lupin Limited, headquartered in Mumbai, India, is strongly research focused. It has a
program for developing New Chemical Entities. The company has a state-of-the-art R&D
center in Pune and is a leading global player in Anti-TB, Cephalosporins (anti-infective) and
Cardiovascular drugs (ACE-inhibitors and cholesterol reducing agents) and has a notable
presence in the areas of diabetes, anti-inflammatory and respiratory therapy.
We are building on our parent company's strengths of vertical integration in discovery
research, process chemistry, active pharmaceutical ingredient production, formulation
development and regulatory filings. Lupin Pharmaceuticals, Inc. is committed to achieving its
vision and mission of becoming an innovation led transnational pharmaceutical company.
Vinita Gupta, CEO of Lupin Pharmaceuticals, Inc. says "founded on the strengths of our
parent company Lupin Limited, Lupin Pharmaceuticals, Inc. intends to bring a portfolio of
generics as well as branded products to the US market."
For the financial year ended March 2012, Lupin Limited's Revenues & Profit after Tax were
Rs.69,597 Mn (US $1,392 Mn) & Rs. 8,676 Mn (US $ 174 Mn) respectively

Generics Business
Lupin Pharmaceuticals, Inc. entered the U.S. generic pharmaceutical market in 2003. LPIs
strength in the generics market is best characterized by its ability to achieve leading market
shares in even the most competitive market scenarios. As of March 2014, 31 of the 63 generic
products marketed by LPI in the US ranked No. 1 by market share and 53 of the 63 are in the
top 3 by Market share (IMS Health). The US Generics business continued its impressive
growth story in FY 2014, recording revenues of USD 723 million, an increase of 32% over
last year. In FY 2014, they launched 19 new products, including the successful
commercialization of generic versions of Zymaxid, Trizivir and Cymbalta

Branded Business
Lupin Pharmaceuticals, Inc. (LPI) is committed to developing a branded pharmaceutical
presence for pediatric practice in the US market. LPI entered the branded business with
Suprax, an anti-infective product inpediatric. Suprax is now available in tablets
and suspension formulations. Lupin Pharmaceuticals, Inc. has an exclusive license in the
United States to use the Suprax trademark. LPI continues to expand its Suprax branded
franchise with the launch of a capsule dosage form in FY 2014, building on the FY 2013

addition of Suprax chewable tablets. The total Suprax family of products continues to grow
and remains the foundation of the companys US branded business.
Further expanding their branded portfolio, in September 2009, LPI acquired the US rights for
Antara (Fenofibrate Capsules 43mg and 130mg). Antara has strong brand equity with
primary care physicians treating patients for high LDL-C, Total-C, triglycerides, Apo-B and
low HDL-C. In FY 2014, LPI introduced the Antara 90mg capsules. LPI has maintained 70%
market share of the Fenofibrate 130mg market with their brand and authorized generic
products.
In FY 2014, the Company added two new products to its portfolio in order to enhance and
extend its US brands business for the future. In August FY 2013, they acquired exclusive
rights to promote, distribute and market Alinia (nitazoxanide) for oral suspension in the US.
In September 2013, LPI also signed a strategic co-promotion agreement for exclusive rights
to promote Locoid Lotion (hydrocortisone butyrate 0.1%) to the Pediatric community in the
US.

Type

Public

Traded as

BSE: 500257
NSE: LUPIN

Industry

Pharmaceuticals

Founded

1968

Founders

Dr. Desh Bandhu Gupta

Headquarters Mumbai, Maharashtra, India

Key people

Dr. Kamal K Sharma, Vice

Chairman;
Vinita Gupta, Chief Executive
Officer, Lupin Limited;
Nilesh Gupta, Managing Director;
Shakti Chakraborty, Group
President - India Region
Formulations & CIS;
Vinod Dhawan, Group President
AAMLA & Business Development;
Ramesh Swaminathan, President
Finance & Planning.
New leadership team at Lupin from
September 2013

Products

Revenue

Pharmaceuticals, branded
and generic drugs,biotechnology,
AdvancedDrug Delivery
Systems, New Chemical Entity
Research,vaccines, Over-theCounter drugs
9461 crore(US$1.5 billion)
(2012-2013)

Profit

1314 crore(US$210 million)

(2013)

Employees

11355

Subsidiaries

Lupin Pharmaceuticals, Inc.

Kyowa Pharmaceutical Industry
Co. Ltd.
Irom Pharmaceutical Co. Ltd.
Pharma Dynamics
Multicare Pharmaceuticals
Generic Health Pte. Ltd.
Hormosan Pharma GmbH

Website

www.lupinworld.com

CORPORATE OVERVIEW
.
Dr. Desh Bandhu Gupta's vision and dream to fight life threatening infectious diseases and to
manufacture drugs of the highest social priority led to the formation of Lupin in the year
1968. His Vision, his inimitable commitment and verve have steered Lupin to achieving the
distinction of becoming one of the fastest growing Generic pharmaceutical companies
globally. Lupin first gained recognition when it became one of the world's largest
manufacturers of Tuberculosis drugs. The Company today has significant market share in key
markets in the Cardiovascular (prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI,
Anti-Infectives and NSAIDs therapy segments, not to mention global leadership positions in
the Anti-TB and Cephalosporins segments.
The Company's R&D endeavours have resulted in significant progress in its NCE program.
The Company's foray into Advanced Drug Delivery Systems has resulted in the development
of platform technologies that are being used to develop value-added generic pharmaceuticals.
Lupin's world class manufacturing facilities, spread across India and Japan, have played a
critical role in enabling the companies realize its global aspirations. Benchmarked to
International standards, these facilities are approved by international regulatory agencies like
US FDA, UK MHRA, Japan's MHLW, TGA Australia, WHO, and the MCC South Africa.
Our Drugs and products reach over 100 countries in the world.
Today, Lupin has emerged as the 5th largest and the fastest growing Top 5 company in the
U.S (by prescriptions), the only Asian company to achieve that distinction. The company is
also the fastest growing, top 3 pharmaceutical players in India (ORG IMS) and the fastest
growing top 10 Generic players in Japan and South Africa. (IMS), Today, Lupin also has the
unique distinction of being the fastest growing top 10 Generics players in the two largest
pharmaceutical markets of the world The U.S (ranked 5th by prescriptions) and Japan
(ranked 7th). Lupin's Consolidated Revenues and Profit after Tax were Rs. 110866 million
(USD 1.83 billion) and Rs. 18364 million (USD 304 million) for FY 2013-14.

HISTORY
Lupin Limited is a transnational pharmaceutical company based in Mumbai. It is the 2nd
largest Indian pharma company by market capitalization; the 14th largest generic
pharmaceutical company globally and; the 5th largest generic pharmaceutical company in the
US by prescription-led market share It has the distinction of being the fastest growing generic
pharmaceutical player in the two largest pharmaceutical markets of the world the US and
Japan; and is the 5th largest and the fastest growing generic pharmaceutical player in South
Africa.

History and Evolution

Lupin was founded in 1968 by Dr. Desh Bandhu Gupta, then an Associate Professor atBITSPilani, Rajasthan. Named after the Lupin flower because of its inherent qualities and what it
personifies and stands for, the company was created with a vision to fight life threatening
infectious diseases and to manufacture drugs of the highest social priority.
Lupin first gained recognition when it became one of the worlds largest manufacturers
of tuberculosis drugs. The company today has a significant market share in key markets in
the Cardiovascular (prils and statins), Diabetology, Asthma, Pediatrics, CNS, GI, AntiInfectives and NSAIDs therapy segments. It also has a global leadership position in the AntiTB and Cephalosporin segments. The companys R&D endeavours have resulted in
significant progress in its NCE program. Lupins foray into Advanced Drug Delivery
Systems has resulted in the development of platform technologies that are being used to
develop value-added generic pharmaceuticals. Its manufacturing facilities, spread across
India and Japan, have played a critical role in enabling the company realize its global
aspirations. Benchmarked to International standards, these facilities are approved by
international regulatory agencies including theUS FDA, UK MHRA, Japans MHLW, TGA
Australia, WHO, and the MCC South Africa.

HISTORY & MILESTONES

Year

Milestones

2014

Lupin Acquires Laboratorios Grin S.A. De C.V., Mexico;

Specialty Ophthalmic Company; Enters the Latin American
Market.
Lupin Acquires Nanomi B.V. - Enters Complex Injectables Space.

2013

Inauguration of new Plant at Nagpur.

2011

Lupin Acquires I'rom Pharmaceuticals through its Japanese

Subsidiary.
Lupin and Medicis Enter into Joint Development Agreement.
Lupin acquires Worldwide Rights for the Goanna Brand.

2009

Lupin acquired majority stake in Multicare Pharmaceuticals

Philippines Inc.

2008

Lupin expanded its product basket in Japan-Kyowa and received

ten products approval from Ministry of Health & Labour Welfare,

Japan.
Lupin acquired Hormosan Pharma GmbH, a Generic Company in
Germany.
Lupin acquired stake in Generic Health Pty Ltd., in Australia.
Lupin acquired Pharma Dynamics in South Africa.
2007

Lupin acquired Vadodara based Rubamin Laboratories Ltd

(rechristened to Novodigm Ltd).
Lupin acquired Kyowa Pharmaceutical Industry Company Limited,
a leading Generic Company in Japan.
Commercial production was started at the New finished dosage
facility at Jammu.
Lupin received "Best new manufacturer of the year" award from
Amerisource Bergen.

2006

A new facility was set up at Jammu.

Maiden Bonus share were issued in the ratio of 1:1.
Maiden issue of Foreign Currency Convertible Bonds (FCCB)
aggregating US $100 mn, which are listed on Singapore Stock
Exchange.

2005

Maiden Employees Stock Option Plan was implemented.

US FDA and MHRA (UK) approvals were received for Goa.
New Lovastatin plant at Tarapur was approved by the US FDA.

2004

WHO approval was received for State of the art formulation Plants
at Goa and Aurangabad.

2003

Lupin had successfully implemented SAP ERP across the

Company to unify all business functions and processes.
Introduced collaborative messaging and workflow solution on the
intranet.
Oral Cefaclor injectible Plant at Mandideep was approved by US
FDA.
Lupin Pharmaceuticals Inc. USA, was formed for trading,
marketing and developmental activities in the US.

2002

Exports to the Advanced Markets crossed Rs.1000 mn.

Rising trend of exports as a % of total revenue up 33% year-over-

year.
Patent filings crossed 100.
Five ANDAs were filed.
New Anti-TB facility was commissioned at Aurangabad.
Rablet was rated by ORG-Marg as the second best launch of FY
2002-03.
2001

Lupin became the only Asian Pharmaceutical company to receive

US FDA approvals for its sterile cephalosporin facility.
A state of the art US FDA approvable oral cephalosporin bulk
active plant was commissioned.
State of the art R&D Centre at Pune was commissioned.
Lupin commenced supply of Cephalosporin bulk actives to its
alliance partners in the US.
Lupin Laboratories Ltd was amalgamated with Lupin Chemicals
Ltd, whose name was changed to Lupin Limited.

2000

The Cefotaxime facility was approved by the US FDA.

The Company's restructuring operations yielded encouraging
results.
Work commenced on the R&D Centre at Pune.

1999

Lupin's injectable cephalosporin bulk active plant at Mandideep

was approved by UK MCA.

1997

Lupin's injectable Cephalosporins dosages plant at Mandideep

obtained UK MCA approval.
Lupin's formulations facility at Aurangabad was upgraded.
Three plants of Lupin, manufacturing Cefaclor at Mandideep, 7
ACCA at Ankleshwar and Rifampicin at Tarapur, got US FDA
approvals.
ICMA Technology award was given for injectable Cephalosporins.

1996

Government of India conferred the 'Best Exporter' Award on

Lupin.
Company received the ICMA Technology award for injectable
Cephalosporins.

1992

Fermentation Plant of Lupin Chemicals Ltd was established at

Tarapur, Maharashtra.

Sterile Plant for injectable Cephalosporins (bulk) was

commissioned at Mandideep.
Lupin Laboratories Ltd and Lupin Chemicals Ltd raised money
through IPOs in 1993-94.
Won FICCI's award for contribution towards rural development.
1991

Injectable cephalosporin (bulk and dosages) production was

initiated at Mandideep.
Lupin won the ICMA technology award for successfully
manufacturing Vitamin B6.

1989

Joint venture in Thailand Lupin Chemicals (Thailand) Ltd was

established.
Two Plants Ankleshwar and Mandideep received US FDA
approvals for maintaining stringent quality standards.

1988

The Lupin Human Welfare and Research Foundation (LHWRF)

was founded by Dr Desh Bandhu Gupta to provide an alternative,
sustainable and replicable model of rural development.

1987

Cephalexin Plant at Mandideep and 7 ADCA plant at Ankleshwar

went on stream.

1981

Ethambutol production was started

1980

Lupin commissioned a formulations plant and an R&D center at

Aurangabad.

1972

Lupin Laboratories Pvt Ltd was incorporated.

1968

Lupin commenced business.

Research and Development

Lupins Research Program covers the entire pharma value chain. The companys global R&D
program is headquartered out of the Lupin Research Park located near Pune that houses over
1200 scientists. Lupins R&D covers:

Generics Research

Process Research
Pharmaceutical Research

Advanced Drug Delivery Systems (ADDS) Research

Intellectual Property Management
Novel Drug Discovery and Development (NDDD)
Biotechnology Research
KEY MARKETS AND BUSINESSES
USA
Headquartered in Baltimore, Maryland, Lupin Pharmaceuticals, Inc. (LPI), the company's
US subsidiary is a $ 706 million enterprise. LPI has a presence in the branded and
generics markets of the US. In the branded business, Lupin operates in the CVS
and Pediatric segments. The company is the market leader in 24 products out of the 46
products marketed in the US generics market, of which it is amongst the Top 3 by market
share in 37 of these products (IMS Health, March 2013): Suprax (Cefixime), a paediatric
antibiotic, is Lupins top-selling product here. The company is also the 5th largest and
fastest growing generics player in the US (5.3% market share by prescriptions, IMS
Health). Lupin's US brands business contributed 21% of total US sales whereas the
generics business contributed 79% during FY 2012-13.
India Region Formulations (IRF)
Lupins IRF business focuses on lifestyle and chronic therapy segments. The company
has emerged as one of the fastest growing players in therapies like Cardiology, Central
Nervous System (CNS), Diabetology, Anti-Asthma, Anti-Infective, Gastro Intestinal
and Oncology. The IRF business contributed 25% of the companys overall revenues for
FY 2012-13, growing by 24% and recording revenues of 2364 crore(US$380 million)
for FY 2012-13 as compared to 1905 crore(US$310 million) for FY 2011-12.
There are 9 manufacturing plant and 2 Research pant in India, such as
Jammu(J&K),Mandideep & Indore(Madhya pradesh), Ankaleswar & Dabasa (Gujarat),
Tarapur, Aurangabad and Nagpur (Maharastra) and Goa; where research centre at Pune
and Aurangabad. Among these the baby plant is Nagpur plant which will the biggest
formulation unit for Lupin in coming year.
Europe
Lupins focus in the European Union encompasses Anti-Infectives, Cardiovascular, and
CNS therapy areas, along with niche opportunities in segments like Oral Contraceptives,
Dermatology and Ophthalmics. The companys presence in France is by way of a trade
partnership; in Germany, it operates through its acquired entity Hormosan Pharma
GmbH (Hormosan); while the UK business is a direct-to-market initiative.

Japan
Lupin is the fastest-growing Top 10 generic pharmaceuticals player in Japan (IMS).
Lupin operates in Japan through its subsidiary, Kyowa Pharmaceutical Industry Co.
Ltd. (Kyowa), a company Lupin acquired in 2007, and Irom, Pharmaceutical Co.
Ltd (IP), acquired in 2011. Kyowa has an active presence in Neurology,
Cardiovascular,Gastroenterology and the Respiratory therapy segments. I'rom is a niche
injectables company with significant presence in the DPC hospital segment.

South Africa
Lupin's South African subsidiary, Pharma Dynamics (PD)[32] is the fastest growing and
the 5th largest generic company in the South African market (IMS). The company is a
market leader in the Cardiovascular segment and has a growing presence in Neurology,
Gastroenterology and the Over the Counter (OTC) segments.
Australia
Lupin entered the Australian market through its subsidiary, Generic Health Pte.
Ltd. (GH). It subsequently acquired the worldwide marketing rights to the over 100 year
old Australian brand Goanna, used for pain management.
Philippines
Lupin's Philippines subsidiary Multicare Pharmaceuticals(Multicare), is a branded
generic company focused on Women's Health, Pediatrics, Gastro-Intestinal and Diabetes
care. FY 2012 also marked its foray into the Neurology segment when it entered into a
strategic marketing partnership with Sanofi.

Biotechnology Research
The Lupin Biotechnology Research Group, based out of Wakad, nearPune is focussed on
developing affordable, high quality biopharmaceuticals with an emphasis on biosimilars.
As of May 2013, it has a pipeline of 10 biosimilar products under development, and is
close to getting marketing authorization for 2 of its oncology products for the Indian
market. Lupin has competencies for the complete development and manufacture of
recombinant protein therapeutic products from high yielding and proprietary microbial
and mammalian cell culture platforms. The Biotech R&D infrastructure offers a range of
product development capabilities ranging from clone development, process optimization,
analytical method development, bioassay, formulation, stability studies, non-clinical and
clinical studies backed by a sound understanding of regulatory and IP aspects. The
companys biotech development programs are in compliance of and
follow ICH, EMEA and Indian Regulatory guidelines.

Corporate Social Responsibility

To further its social responsibility objectives, Lupin established the Lupin Human
Welfare & Research Foundation (LHWRF) on 2 October 1988. Its chief objective was to
provide an alternative sustainable, replicable and ever evolving model of holistic rural
development. LHWRF started with a few small rural development projects covering
around 35 villages in Bharatpur District, Rajasthan. Its efforts have touched the lives of
over a million people across 2,200 villages in the states of Rajasthan, Madhya
Pradesh, Maharashtra and Uttarakhand.

Mission/Vision
Lupin's mission is to become a transnational pharmaceutical company through the
development and introduction of a wide portfolio of branded and
generic products in key markets

Vision
Lupin Pharmaceuticals, Inc. is committed to bringing innovative products for
the healthcare professional to improve the health and well being of individuals.
Lupin Pharmaceuticals, Inc. is well positioned for growth in the US market. We
can capitalize on the strengths of our parent company, Lupin Limited:

Scientific expertise to develop new and improved products and product line
extensions;
Manufacturing technology, expertise and infrastructure;
Financial resources.

Products
Generics
Lupin Pharmaceuticals, Inc. entered the U.S. generic pharmaceutical market in
2003 with the ANDA approval for Cefuroxime Axetil Tablets. Since then we have
received more than 75 FDA approvals and have become one of the fastest growing
pharmaceutical companies in the US. Our consistent track record of growth is a
result of a valuable pipeline, solid customer relationships, and flawless execution.
We are vertically integrated, from process development of the API to the
submission of dossiers for finished dosages. This provides control over the supply
chain and the ability to offer quality products at the right time and at competitive
prices.
Our integrated manufacturing capability provides a portfolio of the highest quality
generic products.
Expanding the product portfolio, Lupin Pharmaceuticals, Inc. is geared to file 20

or more ANDA's per year in some of the following areas:

Oral and injectable cephalosporins;
Cardiovascular;
Controlled release ANDA's;
Paragraph IV's.
Lupin operates a globally integrated network of 11 manufacturing facilities. Our
world class facilities are built to manufacture and deliver a wide range of finished
products to the US market. All facilities are in constant compliance with quality,
safety, environment standards as laid down by governments and leading regulators
such as the US FDA.

Specialty
A commitment To Caring For Kids
Lupin Pharmaceuticals, Inc. is committed to developing a branded
pharmaceutical presence for pediatric practice in the US market. We are
committed to identifying, developing and marketing prescription drugs for children
of all ages. Lupin has created a dedicated national sales force to call
upon paediatricians.
Lupin Pharmaceuticals, Inc., is very pleased to offer Suprax, an important antiinfective product in pediatric and other physician practices within the United
States. Suprax is now available in tablets and suspension formulations. Lupin
Pharmaceuticals, Inc., has an exclusive license in the United States to use the
Suprax trademark.

We plan to expand our family of pediatric products to help meet needs of children.
Our focus is on in-house product development with our proprietary oral controlled
release and taste masking platforms. Lupin Pharmaceuticals, Inc. is also open to
marketing alliances, and to licensing/acquisitions.

API
Lupin is recognized as a leading manufacturer of cephalosporin
APIs, with FDA approval to manufacture complex oral and
injectable cephalosporins.
Lupin is fast gaining share in the cardiovascular
segment manufacturing a wide range of ACE-inhibitors
and cholesterol reducing agents.
Lupins capabilities in sterile processing, synthetic process
development and fermentation skills coupled with its intellectual

property strengths, puts the company in a very strong position to

offer a diverse portfolio of niche APIs to its customers.

Manufacturing / R&D
Lupin Pharmaceuticals, Inc. provides the advanced manufacturing capabilities and
processes that create quality specialty and generic products. Lupin is amongst the
world's largest manufacturers of products in its chosen therapeutic areas. Lupin has
manufacturing operations in 5 cities in India and also a site in Thailand. Our plants
are located at Mandideep, Aurangabad, Tarapur, Ankleshwar and Goa, in India.
The new tablet/capsule facility in Goa, India allows Lupin to file and manufacture
a wide range of finished products for the US market:
Diverse / Integrated manufacturing capability;
Synthetic API's; Fermentation products;
Oral and injectable finished products.
We have cost leadership with large scale, complex products.

ACCOMPLISHMENTS
Successful US FDA inspection at 11 manufacturing facilities
Asia's only US FDA approved fermentation plant for rifampicin.
WHO certified finished products manufacturing facility for tuberculosis products.

Authorized Distributor of Record for Lupin's Generic Pharmaceuticals

LUPIN PHARMACEUTICALS, INC., has a total of 283 Authorized

Distributors for its Generics Division.

Manufacturing Plants
Plant - Mandideep, Madhya Pradesh state, India.
Forms the hub of Lupin's competencies in cephalosporins and ACE-Inhibitors.
Manufactures both APIs and finished dosages.
World's largest producer of lisinopril API.
Manufactures both oral and injectable cephalosporins.
Plant - Tarapur, Maharashtra state, India.
Forms the core of Lupin's fermentation capabilities.
World's largest plant for rifampicin. One of only three rifampicin plants in the
world approved by the US FDA.
Produces lovastatin conforming to top world class standards in cGMP.

Main products: rifampicin, lovastatin, other statins.

Plant - Goa.
Forms Lupin's non-cephalosporin oral dosages.
Lupin's 11th plant to receive US FDA approval.

Lupin has a global manufacturing footprint, with operations in India and Japan.
The Company operates 12 world-class facilities (10 in India and 2 in Japan)

FINANCIAL STATEMENT OF LUPIN PHARMACEUTICALS, INC

Balance Sheet of Lupin

Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Net worth
Secured Loans
Unsecured Loans
Total Debt
Total Liabilities

Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories

------------------- in Rs. Cr. ------------------Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

89.68
89.68
0.00
0.00
6,889.36
0.00
6,979.04
50.00
89.40
139.40
7,118.44
Mar '14

89.51
89.51
0.00
0.00
4,757.20
0.00
4,846.71
411.30
143.99
555.29
5,402.00
Mar '13

89.33
89.33
0.00
0.00
3,645.08
0.00
3,734.41
580.82
411.83
992.65
4,727.06
Mar '12

89.24
89.24
0.00
0.00
3,063.42
0.00
3,152.66
637.46
342.00
979.46
4,132.12
Mar '11

88.94
88.94
0.00
0.00
2,441.61
0.00
2,530.55
704.00
202.81
906.81
3,437.36
Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

3,056.96
877.50
2,179.46
267.05
1,163.66
1,372.24

2,762.91
749.26
2,013.65
240.12
688.04
1,330.83

2,335.41
627.93
1,707.48
357.33
687.29
1,123.56

1,869.09
514.46
1,354.63
442.09
680.88
841.11

1,616.52
425.13
1,191.39
140.83
724.07
713.70

Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)

2,859.92
146.28
4,378.44
810.35
0.00
5,188.79
0.00
1,367.80
312.72
1,680.52
3,508.27
0.00
7,118.44

1,874.27
20.12
3,225.22
878.70
0.00
4,103.92
0.00
1,332.67
311.06
1,643.73
2,460.19
0.00
5,402.00

1,490.80
19.20
2,633.56
773.05
0.00
3,406.61
0.00
1,193.81
237.84
1,431.65
1,974.96
0.00
4,727.06

1,234.28
37.46
2,112.85
621.32
0.00
2,734.17
0.00
880.29
199.36
1,079.65
1,654.52
0.00
4,132.12

916.59
36.53
1,666.82
665.79
0.89
2,333.50
0.00
785.62
166.81
952.43
1,381.07
0.00
3,437.36

538.52
155.65

484.51
108.30

557.28
83.61

235.67
70.66

113.70
284.51

PROFIT & LOSS A/C

Consolidated Profit & Loss
account

Income
Sales Turnover
Excise Duty
Net Sales
Other Income
Stock Adjustments
Total Income
Expenditure
Raw Materials
Power & Fuel Cost
Employee Cost
Other Manufacturing Expenses
Selling and Admin Expenses
Miscellaneous Expenses
Preoperative Exp Capitalised

------------------- in Rs. Cr. ------------------Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

11,286.57
0.00
11,286.57
116.48
200.41
11,603.46

9,641.30
0.00
9,641.30
27.85
0.00
9,669.15

7,082.91
0.00
7,082.91
14.35
316.91
7,414.17

5,820.54
39.76
5,780.78
44.27
90.71
5,915.76

4,859.13
35.08
4,824.05
28.10
9.65
4,861.80

4,296.52
334.29
1,464.65
0.00
0.00
2,388.73
0.00

3,978.58
320.22
1,248.79
0.00
0.00
2,015.95
0.00

3,112.65
268.82
969.53
0.00
0.00
1,604.11
0.00

2,485.36
205.47
767.70
137.34
852.99
232.88
0.00

2,088.49
154.66
587.15
111.70
723.14
185.82
0.00

Total Expenses

Operating Profit
PBDIT
Interest
PBDT
Depreciation
Other Written Off
Profit Before Tax
Extra-ordinary items
PBT (Post Extra-ord Items)
Tax
Reported Net Profit
Minority Interest
Share Of P/L Of Associates
Net P/L After Minority Interest &
Share Of Associates
Total Value Addition
Preference Dividend
Equity Dividend
Corporate Dividend Tax
Per share data (annualised)
Shares in issue (lakhs)
Earnings Per Share (Rs)
Equity Dividend (%)
Book Value (Rs)

8,484.19
Mar '14

7,563.54
Mar '13

5,955.11
Mar '12

4,681.74
Mar '11

3,850.96
Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

3,002.79
3,119.27
26.65
3,092.62
260.97
0.00
2,831.65
0.00
2,831.65
962.15
1,869.50
33.13
0.00

2,077.76
2,105.61
41.02
2,064.59
332.19
0.00
1,732.40
0.00
1,732.40
584.16
1,340.44
26.28
0.00

1,444.71
1,459.06
35.47
1,423.59
227.52
0.00
1,196.07
0.00
1,196.07
308.56
887.51
19.86
0.00

1,189.75
1,234.02
66.84
1,167.18
171.18
0.00
996.00
-4.24
991.76
116.93
879.39
14.84
2.00

982.74
1,010.84
52.50
958.34
123.91
0.00
834.43
0.18
834.61
136.02
699.67
11.16
6.88

1,836.37

1,314.16

867.65

862.23

680.37

4,187.67
0.00
269.01
24.78

3,584.96
0.00
179.01
30.43

2,842.46
0.00
152.26
25.45

2,196.38
0.00
141.92
23.64

1,762.47
0.00
126.13
21.10

4,483.76
41.69
0.00
154.59

4,475.29
29.95
0.00
116.29

4,466.42
19.87
0.00
89.85

4,462.01
19.71
0.00
73.53

889.44
78.66
0.00
288.70

CASH FLOW STATEMENT

Cash Flow of Lupin

Net Profit Before Tax

Net Cash From Operating Activities
Net Cash (used in)/from
Investing Activities
Net Cash (used in)/from Financing Activities
Net (decrease)/increase In Cash and Cash
Equivalents
Opening Cash & Cash Equivalents
Closing Cash & Cash Equivalents

------------------- in Rs. Cr. ------------------Mar '14

Mar '13

Mar '12

Mar '11

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

3139.09
1528.13

1723.81
1008.24

1004.71
477.83

843.68
458.98

708.66
532.57

-446.51

-371.92

-397.93

-375.00

-684.11

-844.47

-635.04

-97.53

-84.42

176.83

237.15

1.28

-17.63

-0.44

25.29

18.16
255.31

16.88
18.16

34.51
16.88

34.95
34.51

12.13
37.42

FINANCIAL RATIOS
Key Financial Ratios of Lupin
Mar
'14
Investment Valuation Ratios
Face Value
2.00
Dividend Per Share
6.00
Operating Profit Per Share (Rs)
64.95
Net Operating Profit Per Share (Rs)
199.37
Free Reserves Per Share (Rs)
-Bonus in Equity Capital
44.77
Profitability Ratios
Operating Profit Margin (%)
32.57
Profit Before Interest And Tax Margin (%) 29.34
Gross Profit Margin (%)
30.70
Cash Profit Margin (%)
26.63
Adjusted Cash Margin (%)
26.63
Net Profit Margin (%)
24.84
Adjusted Net Profit Margin (%)
24.84
Return On Capital Employed (%)
44.39

Mar '13

Mar '12

Mar '11

Mar '10

2.00
4.00
42.10
159.15
-44.85

2.00
3.20
23.05
120.56
-44.94

2.00
3.00
21.48
100.74
-44.99

10.00
13.50
94.57
414.88
264.48
45.14

26.45
24.26
24.34
19.73
19.73
17.63
17.63
32.52

19.11
16.65
16.66
14.91
14.91
14.92
14.92
19.05

21.32
18.93
19.00
20.25
20.25
17.95
17.95
21.07

22.79
20.50
20.58
20.47
20.47
17.52
17.52
22.49

Return On Net Worth (%)

Adjusted Return on Net Worth (%)
Return on Assets Excluding Revaluations
Return on Assets Including Revaluations
Return on Long Term Funds (%)
Liquidity And Solvency Ratios
Current Ratio
Quick Ratio
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover
Total Debt to Owners Fund
Financial Charges Coverage Ratio
Financial Charges Coverage Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio
Debtors Turnover Ratio
Investments Turnover Ratio
Fixed Assets Turnover Ratio
Total Assets Turnover Ratio
Asset Turnover Ratio

33.30
33.30
155.65
155.65
45.12

26.00
26.00
108.30
108.30
36.03

21.53
17.99
83.61
83.61
23.28

25.69
25.67
70.66
70.66
25.80

25.64
26.74
284.51
284.51
28.96

2.81
2.27
0.02
--

1.59
1.69
0.11
0.01

1.19
1.59
0.27
0.04

1.10
1.75
0.31
0.07

0.96
1.68
0.36
0.06

150.55
0.02
158.54
119.72

52.80
0.11
57.31
43.38

31.41
0.27
36.01
33.65

31.58
0.31
35.37
34.16

27.25
0.36
23.25
20.87

6.51
3.78
6.51
2.93
1.26
1.43

5.35
4.23
5.35
2.59
1.32
1.41

4.79
3.95
4.79
2.32
1.14
1.22

5.34
4.18
5.34
2.42
1.09
1.19

5.70
4.54
5.70
2.29
1.08
1.28

Average Raw Material Holding

Average Finished Goods Held
Number of Days In Working Capital
Profit & Loss Account Ratios
Material Cost Composition
Imported Composition of Raw Materials
Consumed
Selling Distribution Cost Composition
Expenses as Composition of Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit
Dividend Payout Ratio Cash Profit
Earning Retention Ratio
Cash Earning Retention Ratio
Adjusted Cash Flow Times

--143.92

--126.07

--138.55

--139.32

87.13
34.38
134.74

36.05

41.05

44.15

42.74

43.27

38.30

38.35

38.86

42.58

44.72

-70.55

-62.82

-60.25

-59.05

9.72
58.35

11.57
10.79
88.43
89.21
0.06

14.20
12.69
85.80
87.31
0.39

17.76
15.26
78.73
82.22
1.23

16.52
14.64
83.47
85.36
1.07

18.50
16.43
82.26
84.17
1.20

Earnings Per Share

Book Value

Mar
'14

Mar '13

Mar '12

Mar '11

Mar '10

51.84
155.65

28.16
108.30

18.01
83.61

18.15
70.66

72.96
284.51

ANALYSIS OF RATIOS OF LUPIN PHARMACEUTICALS

PROFITABILITY RATIOS
OPERATING PROFIT
Operating profit ratio Operating profit is an indicator of operational efficiencies. Operating
profit Ratio establishes relationship between operating profit and net sales. Operating Profit =
Gross Profit (Administration expenses + selling expenses) Significance It helps in
examining the overall efficiency of the business. It measures profitability and soundness of
the business. Higher the ratio, the better is the profitability of the business

35

32.57

30
26.45
25
21.32
20

19.11

22.79
2014
2013
2012

15

2011
2010

10
5
0
Operating Profit Margin (%)

Operating Margin Analysis

Operating margin ratio shows whether the fixed costs are too high for the
production or sales volume.
High or increasing operating margin is preferred because if the operating
margin is increasing, the company is earning more per dollar of sales.
Operating margin can be used to compare a company with its competitors and
with its past performance. It is best to analyze the changes of operating margin
over time and to compare company's figure to those of its competitors.
Operating margin shows the profitability of sales resulting from regular
business. Operating income results from ordinary business operations and
excludes other revenue or losses, extraordinary items, interest on long term
liabilities and income taxes.
GROSS PROFIT MARGIN

35

30.7

30
24.34

25
20

20.58
19
16.66

2014
2013

15

2012

10

2011
5

2010

0
Gross Profit
Margin (%)

Gross profit margin is a key financial indicator used to find the profitability of a company's
core activity, excluding fixed cost.
Gross profit margin formula is:

Gross profit margin measures company's manufacturing and distribution efficiency during the
production process. It is a measurement of how much from each dollar of a company's
revenue is available to cover overhead, other expenses and profits.
Gross Profit Margin Analysis
The ideal level of gross profit margin depends on the industries, how long the business has
been established and other factors.
High gross profit margin indicates that the company can make a reasonable profit, as long as
it keeps the overhead cost in control.
Low gross profit margin indicates that the business is unable to control its production cost.
Gross profit margin can be used to compare a company with its competitors. More efficient
firms will usually see a higher margin. Also, it provides clues about company's pricing, cost
structure and production efficiency. Therefore, gross profit margin can be used to compare
company's activity over time.
For most of the businesses, gross profit margin is affected by seasonality. Generally, in the
good months, this margin is higher than in the slower months, when the company may use
sales and other marketing tools to attract more customers.
Gross profit margin should be analyzed along with operating margin, which asses the
profitability after including fixed cost and net profit margin, which asses the profitability after
including fixed cost, interest expenses and taxes.

NET PROFIT RATIO

24.84

25
20

17.6317.95
17.52

15

14.92
2014
2013

10

2012
2011

2010
0
Net Profit
Margin (%)

Net profit ratio it indicates sales margin on sales. This is expressed as percentage. The main
objective of calculating this ratio is to determine the overall profitability. Significance it
indicates the extent to which management has been effective in reducing the operational
expenses. Higher the net profit ratio, better it is for the business
Net profit margin provides clues to the company's pricing policies, cost structure and
production efficiency. Different strategies and product mix cause the net profit margin to
vary among different companies.
Net profit margin is an indicator of how efficient a company is and how well it controls its
costs. The higher the margin is, the more effective the company is in converting revenue
into actual profit.
Net profit margin is mostly used to compare company's results over time. To compare net
profit margin, even between companies in the same industry, might have little meaning. For
example, if a company recently took a long-term loan to increase its production capacity,
the net profit margin will significantly be reduced. That does not mean, necessarily, that the
company is less efficient than other competitors.

RETURN ON LONG TERM FUNDS

50

45.12

45
40

36.03

35
30
23.28

25

25.8

28.96

2014
2013

20

2012

15

2011

10

2010

5
0

Return on Long Term Funds (%)

Liquidity And Solvency Ratios

2.81

2.5

2.27

2
1.59
1.5
1

2014

1.69 1.75
1.68
1.59

2013
2012

1.19
1.1
0.96

2011
2010
0.36
0.31
0.27
0.11
0.02

0.5
0
Current Ratio

Quick Ratio

Debt Equity Ratio

CURRENT RATIO
Current ratio the objective of computing this ratio is to measure the ability of the
firm to meet its short term liability. It compares the current assets and current
liabilities of the firm. This ratio is calculated as under :
Significance It indicates the amount of current assets available for
repayment of current liabilities. Higher the ratio, the greater is the short term
solvency of a firm and vice averse. However, a very high ratio or very low ratio is a
matter of concern. Thus, the ideal current ratio of a company is 2 : 1 i.e. to repay
current liabilities, there should be twice current assets.

Current Ratio Analysis

Acceptable current ratio values vary from industry to industry. Generally, a
current ratio of 2:1 is considered to be acceptable. The higher the current ratio is,
the more capable the company is to pay its obligations. Current ratio is also
affected by seasonality.
If current ratio is bellow 1 (current liabilities exceed current assets), then the
company may have problems paying its bills on time. However, low values do
not indicate a critical problem but should concern the management. One
exception to the rule is considered fast-food industry because the inventory turns
over much more rapidly than the accounts payable becoming due.
Current ratio gives an idea of company's operating efficiency. A high ratio
indicates "safe" liquidity, but also it can be a signal that the company has
problems getting paid on its receivable or have long inventory turnover, both
symptoms that the company may not be efficiently using its current assets.

QUICK RATIO
Quick ratio Quick ratio is also known as Acid test or Liquid ratio. It is another ratio
to test the liability of the concern.

This ratio establishes a relationship between

quick assets and current liabilities.. The main purpose of this ratio is to measure the

ability of the firm to pay its current liabilities. Significance

Quick ratio is a

measure of the instant debt paying capacity of the business enterprise. It is a

measure of the extent to which liquid resources are immediately available to meet
current obligations. A quick ratio of 1: 1 is considered good for a company.
Ideally, quick ratio should be 1:1.
If quick ratio is higher, company may keep too much cash on hand or have a
problem collecting its accounts receivable. Higher quick ratio is needed when the
company has difficulty borrowing on short-term notes. A quick ratio higher than 1:1
indicates that the business can meet its current financial obligations with the
available quick funds on hand.
A quick ratio lower than 1:1 may indicate that the company relies too much on
inventory or other assets to pay its short-term liabilities.
Many lenders are interested in this ratio because it does not include inventory,
which may or may not be easily converted into cash.

DEBIT EQUITY
Debt-equity ratio it is also otherwise known as external to internal equity ratio. The
outsiders funds include all debts/liabilities to outsiders i.e. debentures, long term loans from
financial institutions, etc. Shareholders funds mean preference share capital, equity share
capital, reserves and surplus and fictitious assets like preliminary expenses. In India, this ratio
may be taken as acceptable
if it is 2 : 1. If the debt-equity ratio is more than that, it shows a rather risky financial position
from the long-term point of view

MANAGEMENT EFFICIENCY RATIO

7
6
5

6.51

6.51

5.7
5.35 5.34
4.79

5.7
5.35 5.34
4.54
4.23 4.18
3.78 3.95

4.79
2014
2013
2.93
2.59 2.42
2.32 2.29

3
2

2012
2011
2010

1
0
Inventory
Turnover Ratio

Debtors Turnover
Ratio

Investments
Turnover Ratio

Fixed Assets
Turnover Ratio

DEBTORS TURNOVER
Debtors Turnover Ratio This ratio establishes a relationship between net credit sales and
average account receivables. The objective of computing this ratio is to determine the
efficiency with which the trade debtors are managed
A high receivables turnover ratio implies either that the company operates on a cash basis or
that its extension of credit and collection of accounts receivable are efficient. Also, a high
ratio reflects a short lapse of time between sales and the collection of cash, while a low
number means collection takes longer.
The lower the ratio is the longer receivables are being held and the risk to not be collected
increases. A low receivables turnover ratio implies that the company should re-assess its
credit policies in order to ensure the timely collection of credit sales that is not earning
interest for the firm.
A ratio that is low by industry standards will generally indicate that your business needs to
improve its credit policies and collection procedures.
If the ratio is going up, either collection efforts may be improving, sales may be raising or
receivables are being reduced.

Receivables turnover ratio is figured as "turnover times". A popular variant of this ratio is to
convert it into an average collection period in terms of days.

Inventory Turnover Ratio

The ratio signifies the number of times on an average the inventory or stock is disposed off
during the period. The high ratio indicates efficiency and the low ratio indicates inefficiency
of stock management
his ratio should be compared against industry averages.
Low inventory turnover ratio is a signal of inefficiency, since inventory usually has a rate of
return of zero. It also implies either poor sales or excess inventory. A low turnover rate can
indicate poor liquidity, possible overstocking, and obsolescence, but it may also reflect a
planned inventory buildup in the case of material shortages or in anticipation of rapidly rising
prices.
High inventory turnover ratio implies either strong sales or ineffective buying (the company
buys too often in small quantities, therefore the buying price is higher).A high inventory
turnover ratio can indicate better liquidity, but it can also indicate a shortage or inadequate
inventory levels, which may lead to a loss in business.
High inventory levels are usual unhealthy because they represent an investment with a rate of
return of zero. It also opens the company up to trouble if the prices begin to fall.
A good rule of thumb is that if inventory turnover ratio multiply by gross profit margin (in
percentage) is 100 percent or higher, then the average inventory is not too high.

Fixed Assets Turnover (FAT)

The FAT ratio measures the net sales per rupee of investment in fixed assets.
Formula:

Net sales
Fixed assets turnover =
Net fixed assets

This ratio measures the efficiency with which fixed assets are employed. A high ratio
indicates a high degree of efficiency in asset utilization while a low ratio reflects an
inefficient use of assets. However, this ratio should be used with caution because when the
fixed assets of a firm are old and substantially depreciated, the fixed assets turnover ratio
tends to be high (because the denominator of the ratio is very low).

CASH FLOW INDICATOR RATIO

88.43
85.8 83.47
82.26
78.73

90

89.21
87.31 85.36
82.22 84.17

80
70
60

2014

50

2013

40

2012
2011

30
20

2010

15.26 16.43
12.69 14.64
10.79

10
0
Dividend Payout Ratio
Cash Profit

Earning Retention Ratio

Cash Earning Retention

Ratio

Dividend Payout Ratio:Meaning:

Dividend Pay-out Ratio shows the relationship between the dividends paid to equity
shareholders out of the profit available to the equity shareholders.
Formula:
Divident per share
Dividend Payout =

*100
Earning per share

D/P ratio shows the percentage share of net profits after taxes and after preference dividend
has been paid to the preference equity holders

Earnings Retention Ratio measures the percentage of earnings retained after dividends have
been paid out to the shareholders. Other names for the Earnings Retention Ratio
are Plowback Ratio, Retention Rate and Retention Ratio.
The idea behind the Earnings Retention Ratio is that the more the company retains the more
capital it has available for growing the business. There is always a conflict when it comes to
the Earnings Retention Ratio as company managers would like to see a high level of earnings
retention, while shareholders would think otherwise.
Calculation of Earnings Retention Ratio
Earnings Retention Ratio = (Net Income - Dividends) / Net Income

Interpretation of Earnings Retention Ratio

Investors prefer to have a high retention ratio in a high growth business, and a low retention
ratio in a slow growth (mature) business.

Company growth is not only due to retention of earnings but also other factors. Therefore it is
not sufficient to simply look at the Earnings Retention Ratio without examining the entire
business.

COMPETITION
Name

Net Profit

Total Assets

2,762.56

300.84

9,816.89

58,521.52

9,728.05

1,932.84

11,993.50

609.20

48,913.97

9,380.29

1,388.34

10,968.98

Aurobindo Pharm

1,119.95

32,642.59

7,110.71

1,172.09

6,827.25

Cadila Health

1,547.70

31,688.93

4,042.11

903.59

4,557.00

Sun Pharma
Dr Reddys Labs
Cipla

Last Price

Market Cap.

Sales

(Rs. cr.)

Turnover

886.75

183,660.46

3,435.05