Lincoln Pharmaceuticals Ltd reports Standalone Net Profit of Rs. 15.01 crore in Q1FY23

Mr. Mahendra Patel, MD, Lincoln Pharmaceuticals Ltd

Business Highlights:-

  • Total Income in Q1FY23 at Rs. 129.97 crore, up 24.4% from Rs. 104.4 crore in Q4FY22
  • Commercial operations of Cephalosporin Plant and Export to EU & Australia to commence in FY23
  • Company continuous to remain ‘Net Debt Free’ after multiple expansion & acquisition of Cephalosporin plant
  • Robust operational and financial performance during FY12 to FY22 with CAGR Growth 30% in Net profits, 20% in EBITDA and 10% in Revenue.
  • CRISIL has upgraded its ratings on the company’s bank facilities to ‘CRISIL A/Stable/CRISIL A1

Ahmedabad, August 9, 2022: Lincoln Pharmaceuticals Limited, one of India’s leading healthcare companies has reported net profit of Rs. 15.01 crore for the Q1FY23 as against net profit of Rs. 11.10 crore in Q4FY22, growth of 35.2% Q-o-Q. Total income for the quarter ended June 2022 was reported at Rs. 129.97 crore, higher 24.4% Q-o-Q over total income of Rs.104.43 crore in Q4FY22. EBITDA for Q1FY23 was reported at Rs. 23.41 crores as compared to EBITDA of Rs. 19.32 crores in Q4FY22 – growth of 21.14% Q-o-Q. EPS for Q1FY23 was at Rs. 7.49 per share. Exports in Q1FY23 was reported at Rs. 66.08 crore.

Commenting on the results and performance, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, “FY23 is going to be the growth year for the company. Commercial production from the Mehsana facility for the expansion of Cephalosporin products and exports to EU & Australian markets are expected to commence in the current financial year. Company is growing from strength to strength, delivering robust operational and financial performance, maintaining a healthy growth in revenue, margins and profitability. Company will continue to grow with maintaining its net debt status in future also. We expect the growth momentum to continue while maintaining our ‘Net Debt Free’ status in the coming years.”

During  FY22, company launched 14 products in the domestic market and filled 110 dossiers in the export market. In FY23, company will look to consolidate its position in the lifestyle and chronic segments.

In September 2021, company acquired a plant in Mehsana, Gujarat to launch Cephalosporin products. Company has invested Rs. 30 crore in the cephalosporin plant – including acquisition and subsequent capacity expansion using internal source of funds. The plant is expected to start commercial production in current fiscal and expected to contribute sales of around Rs. 150 crore in the next 3 years. The plant will cater to all the Cephalosporin products i.e. Tablet, Capsule, Dry syrup and Injectable. 

Export business of the company has shown strong growth over the years. It currently exports to 60 plus countries including East & West Africa, Central & Latin America and Southeast Asia. TGA – Australia and EU GMP approvals will strengthen the company’s presence and expand its network to 90 plus countries.

Company has reported a robust financial and operational performance during the last decade (FY12 to FY22) maintaining strong CAGR 30% in Net profits, 20% in EBITDA and 10% in Revenue. The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, free cash/liquid investments, no term debt and healthy return ratios.

 Financial Overview – Lincoln Pharmaceuticals FY 12 to FY22 

Year Revenue EBITDA Net Profit EPS ROCE
FY 22 472.1 105.5 69.4 34.6 21.9%
FY 12 175.5 16.9 5.1 3.1 10%
10 Yrs CAGR 10.4% 20.1% 30.0% 27.1% 1190 bps

In (Rs Cr)

CRISIL Ratings has upgraded its ratings on the bank facilities of Lincoln Pharmaceuticals Ltd to ‘CRISIL A/Stable/CRISIL A1’ from CRISIL A-/Positive/CRISIL A2+. CRISIL report further states that, “Over the medium term, the group is expected to maintain its growth trajectory and healthy margin. This shall be supported by addition of Cephalosporin which has potential to add around 30% to the topline over next three fiscals. Further, the group’s European market foray shall provide additional fillip to the business profile. Rating agency ICRA too has reaffirmed the company’s long-term and short-term bank facilities to A and A1 respectively. 

Lincoln Pharma has a state-of-the-art manufacturing facility unit at Khatraj in Ahmedabad, Gujarat, complying with stringent international quality and compliance norms and certified by EUGMP, WHO-GMP, TGA – Australia and ISO-9001: 2015. Company has developed 600 plus formulations in 15 therapeutic areas and has a strong product/brand portfolio in anti-infective, respiratory system, gynaecology, cardio & CNS, anti-bacterial, ant-diabetic, anti-malaria among others.To complement the company’s strong presence in the acute segment, the company is also building a portfolio in lifestyle and chronic segments especially dermatology, gastro and pain management. Company has filed 25 plus patent applications and is awarded with seven patents. Company has a strong presence in the domestic market nationally with a dedicated field force of over 600 personnel who cater to more than 30,000 doctors, chemists across the country.

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