According to a company press release, domestic formulations and active pharmaceutical indgredients (API) were the main contributors to the jump in sales. These two segments have facilitated an increase in sales despite a drop in formulations exports caused by a meltdown in Russia and the continuing Asian crisis.

While API sales increased 19.3 per cent to Rs 176.38 crore (Rs 147.90 crore), domestic formulations sales were up 16.7 per cent to Rs 177.33 crore (Rs 151.93 crore).

The company focussed on enhancing API volumes, particularly for higher-margin drugs like ceftriaxone and ethambutol, to counter the reduction in margins earlier this year. Another major API, for which salespicked up during the last six months, was cefotaxime.

The increase in net-profit margins is attributed to the domestic anti-TB drugs business. Some of the key products contributing to this growth were anti-allergy drug CZ-3 and appetite stimulant brand, Aptivate. CZ-3 was reported to be the brand leader in this quarter and Aptivate has been the second best-selling brand, in their respective categories.

Other income rose marginally to Rs 93.69 lakh during the first half, while total expenditure rose to Rs 320.25 crore (Rs 275.36 crores). Interest and depreciation stood at Rs 24.37 crore and Rs 6.14 crore.

According to the company, provision for taxation, if any, including minimum alternate tax, will be determined and provided for at the end of the financial year. Tax provision for the year ended June 30, 1998 was Rs 2 crore.

Lupin group chairman Desh Bandhu Gupta said, "We aim to cross the Rs 1,000-crore mark in turnover this year. The focus on high value-added segments will not only increaseprofitability and sales in the current year but also seed the markets for exponential growth in the coming years. We will continue to tap opportunities in developed countries as future growth is expected to come from these markets".