Lincoln Pharmaceuticals Ltd achieves the milestone of Rs. 533 crore Revenue and Rs. 100 crore Profit before Tax for the first time in a Financial Year for FY2022-23
Ahmedabad: Lincoln Pharmaceuticals Limited, one of India's leading healthcare companies, has achieved the milestone of Rs. 533 crore in Revenue & Rs. 100 crore Profit before tax for the first time in a financial year. The company has reported its Best-ever results in a financial year with highest - Revenue, EBITDA and Net Profit during FY 2023. The company has recommended a dividend of 15%, Rs. 1.50 per share on the face value of Rs. 10 per share for the FY 2022-23.
The company reported a net profit of Rs. 72.90 crore for FY23 as against net profit of Rs. 69.36 crore in the corresponding period last year, a growth of 5.11%. Total Income for FY23 was reported at Rs. 532.79 crore, higher by 10.52% over the previous fiscal’s same period total income of Rs. 482.08 crore. The company reported EBITDA of Rs. 111.65 crore in FY23, rise of 5.86% as compared to EBITDA of Rs. 105.47 crore in FY22. EPS for FY23 was reported at Rs. 36.40 per share.
Commenting on the results and performance, Mr. Mahendra Patel, Managing Director, Lincoln Pharmaceuticals Limited, said, "Company has achieved the milestone of Rs. 500 crore revenue and Rs. 100 Crore in Profit in FY23 with a robust operational and financial performance along with healthy growth in revenue, margins and profitability. We expect the growth momentum to continue and expect to get a further boost in the coming years. The company has set a target of achieving Rs. 750 crores in revenue by FY26 while maintaining or improving its margins. With a robust performance, the company has recommended a dividend of Rs. 1.5 per share.”
Highlights: Q4FY23 Results
For Q4 ended FY23, the company reported a net profit of Rs. 12.56 crore as against a net profit of Rs. 11.02 crore in the corresponding period last year, a growth of 14.00%. Total Income for the Q4FY23 was reported at Rs. 116.41 crores, higher by 11.47% over the previous fiscal’s same period income of Rs. 104.4 crores. The company reported EBITDA of Rs. 20.54 crore in Q4 FY23, a rise of 6.26% as compared to Rs. 19.33 crore in the corresponding period last year. EPS for Q4FY23 was at Rs. 6.27 per share.
“Company has reported its highest-ever Revenue, EBITDA and Net Profit reported on a yearly basis. The company is reporting excellent growth in the domestic and export business and expects to maintain healthy growth in the years to come. Strategic growth initiatives, product and geographical expansion, and operational efficiency are likely to contribute to growth going forward, said Mr. Patel.
Update on Cephalosporin Expansion - In September 2021, the company acquired a plant in Mehsana, Gujarat to launch Cephalosporin products. The company has invested Rs. 30 crores in the cephalosporin plant - including acquisition and subsequent capacity expansion using an internal source of funds. The plant is expected to contribute sales of around Rs. 150 crore in the next 3 years. The company has received approval from WHO-GMP for Tablet Capsule, dry-powder Suspension products.
Over the last 5 years, the company has delivered a 17.35% CAGR in profits and higher single-digit growth in sales. The company has been successful in increasing its profit margins from around 9.88% in FY18 to over 14.88% in FY23. The liquidity position of the company is on a strong foundation, supported by healthy cash accruals, no-term debt, and healthy return ratios. Backed by improvement in the company’s financial risk profile, steady growth in scale & margins, and healthy profitability, rating agency ICRA has upgraded the company’s long-term and short-term bank facilities to A and A1, respectively. Over the last few years, promoter group have gradually increased their stake in the company. Foreign institutional investors holding as on March 2023 stand at 1.27%.
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 and ISO-9001: 2015. The 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, anti-diabetic, and anti-malaria, among others. The company has filed 25-plus patent applications and has been awarded seven patents. The 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 and chemists across the country.
