Laurus Labs Ltd share Price Today

Laurus Labs operates in the segment of generic APIs & FDFs (formulations), custom synthesis and biotechnology. Major focus in APIs is on ARV, oncology and other APIs.

• It owns 11 manufacturing units (six FDA approved sites) with 74 DMFs, 32 ANDAs filed (15 Para IV, 11 first to file) and 192 patents granted.

• Laurus acquired Richore Life Sciences to diversify in recombinant animal origin free products, enzymes as well as building biologics custom synthesis.

Mixed set of numbers with a sharp fall in margins.

• Revenues were in line, down 3.1% YoY at ₹ 1,381 crore

• EBITDA de-grew 28% YoY to ~₹ 286 crore while EBITDA margins corrected ~716 bps YoY to 20.7%. PAT came in at ₹ 105.3 crore for the quarter

Pharmaceuticals company Laurus Labs announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Revenue at Rs 1,440 crore, 4 % (YoY)
• EBITDA at Rs 259 crore, -10 % (YoY)
• EBITDA margins at 18.0 %
• Spend on New Initiatives (Cell & Gene Therapy, Animal Health) at Rs 12 crore
• PAT at Rs 76 crore, -26% (YoY)
• PAT margins at 5.2%
• EPS (Diluted) for the period at Rs 1.4 per share (not annualised)
• Interim Dividend of Rs 0.40/- per share

FY24 Financial Highlights:

• Revenue at Rs 5,041 crore, -17% (YoY) Excluding the large PO, growth of 9%
• EBITDA at Rs 798 crore, -50 % (YoY)
• EBITDA margins at 15.8 %
• Spend on New Initiatives (Cell & Gene Therapy, Animal Health) at Rs 50 crore
• PAT at Rs 161 crore, -80% (YoY)
• PAT margins at 3.2%
• EPS (Diluted) for the period at Rs 2.9 per share 

Commenting on the highlights, Founder and Chief Executive Officer Dr. Satyanarayana Chava stated “Laurus core results reflects continued resilience across our business divisions despite discontinuation of Covid related products purchase orders. We delivered underlying revenue growth of 9% driven by strong performance in FDF, CDMO, Onco API and Bio division. In the CDMO space, we are delivering on multiple RFPs involving higher chemical complexity and scale with increased customer engagement focusing on several sustainable technology platforms. Our on-going innovative CGT investment continue to report significant updates for the period under review, especially successful NexCAR19 commercial launch in India to treat cancers. We are entering FY25 with solid foundation and remain committed to grow by focusing on R&D led commercial excellence. We are prioritizing efforts to improve margin, particularly increasing asset utilization across network and delivering late phase commercial opportunity. At the same time, we have been investing in Laurus future and continuing to create value for all stakeholders.” 

Commenting on the results, V V Ravi Kumar, Executive Director & Chief Financial Officer said, “Overall FY24 reported operating result was challenging driven by selling price decline in ARV products, absence of large PO, and continued OPEX on growth projects/new initiatives. We achieved Rs 5,041 crore in revenues, representing 17% decline. Excluding the large PO the underlying growth was 9% over last year. Gross margin was 51.7% and EBITDA at Rs 798 crore resulting in 15.8% margin. The EBIDTA margin for the Q4FY24 is at 18.0% and reflecting sequential improvement. Despite operational challenges, our committed capacity built-up is on track and continuing our focus on productivity improvement. Going ahead, we are fully focusing on gradually returning to growth, prioritising investments in high value segments, improving Net debt leverage while defining our strategic roadmap to ensure long-term profitable and sustainable growth. We are pleased with our Q4 sequential improvement, supported from all divisions."

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