Lincoln Pharmaceuticals Limited, one of India's leading healthcare companies reported excellent financial performance in the third quarter ended in December 2019. On the back of strong domestic and international business, the company posted 19.74% sales growth, 27.52% rise in exports and 19.47% rise in the EPS the quarter ended Q3FY19-20.
The company reported Net profit of Rs. 10.92 crore for the Q3 FY 2019-20 as against net profit of Rs. 9.14 crore in the corresponding period last year, growth of 19.47%. Net revenue for the quarter ended December 2019 reported at Rs. 101.56 crore was higher by 19.74% over previous fiscal’s same period net revenue of Rs. 84.81 crore. EPS for the Q3FY20 was reported at Rs. 5.46 per share for the as against EPS Rs. 4.57 in correspondence period Last year.
Commenting on the results and performance, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "Despite a challenging business environment, company is delivering robust financial performance quarter over quarter maintaining healthy growth in revenue, profitability and expects to continue the growth momentum in the coming years. Exports sales for Q3FY20 stood at Rs. 86.21 crore, growth of 27.52% Y-o-Y. Our growth has been attributed to a strong performance in the domestic and international markets, new product approvals, better margin products, healthy customer and product base coupled with cost-effective strategies to improve operational efficiency. With best in class R&D capabilities supported by strong industry experience and improving market dynamics, we are confident of achieving improved performance and maximize shareholders’ wealth in the near to medium term.”
Company is building a strong portfolio in lifestyle and chronic segment especially in women healthcare and dermatology to complement its strong presence in acute segment. Company has recently secured patent for its liquid Diclofenac Metered-Dose Rectal Spray (Diclofenac Rectal Spray) and is planning to launch very soon. The Company is also planning to apply for a Global Patent for this novel solution.
During the quarter, board of directors of the company approved the scheme of amalgamation between Lincoln Parenteral Ltd ("Transferor Company") and Lincoln Pharmaceuticals Limited ("Transferee Company"). Lincoln Parenteral Ltd is subsidiary company of Lincoln Pharmaceuticals Limited engaged in the business of small Parenteral Injection Products. The corporate restructuring aims to bring lot of synergies for both companies including competitive strength, operational efficiencies, productivity gains, and logistic advantages, thereby significantly contributing to future growth.
Performance for Nine Months ended December 2019
As a result of expansion in geographical reach in domestic markets, relentless focus on exports and sustained marketing, the Net sales for the nine months ended December 2019 was reported at Rs. 314.88 crore, higher by 7.33% over previous fiscal’s same period net sales of Rs. 293.38 crore. The company reported Net profit of Rs. 42.53 crore for the nine months ended December 2019 as against net profit of Rs. 40.22 crore in the corresponding period last year, growth of 5.74%. EPS for the 9MFY20 was reported at Rs. 21.25 per share. Exports for the 9MFY20 stood at Rs. 174.74 crore, up 14.60%as against exports of Rs. 152.48 crore in 9MFY19.