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  • 21 Oct 2022
  • ICICIdirect Research

LAURUS LABS REPORTED HEALTHY SET OF NUMBERS LED BY CDMO BUSINESS

LAURUSLABS - 499 Change: 4.40 (0.89 %)

News:

  • Revenues grew 30.9% YoY to Rs 1575 crore , primarily led by strong performance in CDMO business followed by API business
  • EBITDA Margins witnessed a minimal decline of ~19 bps to 28.5%, mainly due to higher raw material expenses. EBITDA increased 30% YoY to Rs 449 Crore
  • PAT increased 15.6 % YoY to  Rs 233 Crore, declined 7.1% QoQ
  • CDMO business reported a strong growth of 24.8 % QoQ at Rs 720 crores, supported by accelerated demand from new and existing clients
  • FDF revenues declined by 70% to 149 cr, mainly dragged by lower ARV business. Key factors impacting were lower volumes and lower pricing
  • Generic API’s saw a 29% growth YoY driven by unprecedented growth in Other API which increased 93.5% YoY to  Rs 224 Crores , further supported by sustained ARVs rebound of 21% YoY to  Rs 408 Crore
  • Laurus Bio reported a soft quarter, pegged 3.8 % percent at  Rs 27 crore

 

View:

 Laurus numbers were in line with our estimates on the revenue front as well as on profitability front. CDMO business continued to deliver stellar numbers, but formulations witnessed significant dent due to poor ARV offtake. The management expects recovery from next quarter onwards on the back of two big launches in Europe. Oncology API revenues suffered this quarter due to less offtake of a key product, expected to show growth in H2FY23. We remain positive on the company’s growth story especially in the CDMO space.

Impact:

Positive.