Total sales rose 12 per cent to touch Rs 55.67 crores from Rs 49.63 crores in the previous year, while operating profit rose by 22 per cent to Rs 17.16 crores from Rs 14.03 crores in the previous year. Total expenditure stood at Rs 40.38 crores.

The company said that the constant improvement in performance has been a consequence of sustained research and development and cost reduction efforts.

Interest and depreciation for the period were higher at Rs 7.84 crores and Rs 2.35 crores respectively. The company says that provision for taxation, if any, including minimum alternate tax, will be determined and provided for at the end of the financial year. Gross profit after interest, but before depreciation and taxationstood at Rs 9.32 crores.

Lupin is expected to improve its performance during the second half of the year, as it benefits from the reduced power costs which is a major cost factor in the manufacture of Rifampicin.

The company's 5 megawatt captive power plant is expected to go on stream during the next quarter, and the requisite finance agreements have already been tied up with SBI Commercial.

Besides, the upward revision in the government-notified prices of Rifampicin to Rs 4,885 per kg (up by Rs 78 per kg) will also have a positive impact on the performance of the company, the release added.