Laurus Labs Q1 Results: Profit Rises, But Margin Contracts
Net profit of the pharma and biotech company rose 4% year-on-year to Rs 251 crore in the three months through June.
Laurus Labs Ltd.’s first-quarter profit rose, in line with estimates.
Net profit of the Hyderabad-based pharma and biotech company rose 4% year-on-year to Rs 251 crore in the three months through June, according to its exchange filing. That compares with the Rs 244-crore consensus estimate of analysts tracked by Bloomberg.
Sequentially, profits were up 9%.
Laurus Labs Q1 Highlights (YoY)
Revenue rose 20% to Rs 1,539 crore, against the estimated Rs 1,435 crore.
Operating profit was up 15% to Rs 454 crore, compared with the Rs 418-crore forecast.
Operating margin stood at 29.5% against 30.9% a year ago and 29.1% estimate.
VV Ravi Kumar, executive director and chief financial officer, attributed the revenue performance to the "solid growth in CDMO-synthesis business". The Ebidta margin was consistent as a better mix more than offset for depressed pricing in anti-retrovirals business, he said in the statement.
According to Dr. Satyanarayana Chava, founder and chief executive officer, the company’s first-quarter performance was reflective of its efforts of “diversifying business by an increased focus on non-ARV APIs and formulations and high-growth CDMO segments.”
“Pricing pressure in ARV APIs and the formulation business was significant during this quarter, and ARV FDF volumes would increase in the coming quarters,” he said.
Other Highlights (YoY)
Generic formulations business generated revenue of Rs 349 crore, a decline of 33%. Growth was impacted by lower ARV business, while developed market sales were stable with higher generic volumes offset by pricing pressure.
Active pharmaceutical ingredients business reported a revenue of Rs 583 crore, up 6%.
Custom synthesis business reported a jump of 196% in revenue at Rs 577 crore. This growth was supported by solid demand from new and existing clients. The company is actively working on over 50 projects and ongoing supplies for four commercial projects.
Laurus Bio segment was largely stable and clocked Q1 sales of Rs 30 crore.
The drugmaker's research and development expense was 3% of the revenue at Rs 49 crore.
In Q1, Laurus Labs invested a total of Rs 209 crore capex and we are on track to execute on future capex schedule.
Shares of Laurus Labs were trading 5.49% higher compared with a 0.96% rise in the benchmark Sensex as of 3:02 p.m.