- 26 Jul 2024
- ICICI Securities
Laurus Q1FY25 – Mixed bag, recovery remains on slow track
LAURUSLABS - 470 Change: 12.35 (2.70 %)News: Sales were flat at ₹ 1195 crore as 11% growth in the APIs to ₹ 664 crore was neutralised by ~4% de-growth in formulations (FDF) to ₹ 274 crore and ~14% de-growth in CDMO to ₹ 214 crore. EBITDA grew mere ~3% YoY to ₹ 171 crore and margins stood at 14.3% despite solid GPM growth of 448 bps to 55% mainly on account of higher employee and other expenses. PAT declined 57% to ₹ 12 crore.
Views: API growth during the quarter was driven by strong Oncology traction. Formulations growth was impacted mainly due to lower volume offtake in ARV business while Developed market delivered good growth despite pricing pressure in the US. CDMO growth was impacted due to recalibration by way of resource allocation towards delivering multiple high value complex programs in early/mid phases. The company is incrementally getting new inquiries across value chains. For FY25, the management expects EBITDA margins improvement, supported by better asset utilization & productivity gains while continuing new initiatives. It also plans to prioritise capex into high value and growing market segments.
Impact: Neutral