- 26 Apr 2024
- ICICI Securities
Laurus Q4FY24 - Performance on the mend, slowly
LAURUSLABS - 439 Change: -8.15 (-1.82 %)News: Q4 Sales grew ~21% QoQ to Rs 1440 crore driven by driven by 30% growth in generic APIs to Rs 745 crore and 17% growth in formulations to Rs 430 crore. CDMO sales also grew 11% QoQ to Rs 236 crore. GPM however declined ~450 bps QOQ probably on account of higher ARV API sales. But EBTIDAM improved ~160 bps QoQ to 16.8% on the back of better cost controls.
Views: API growth during the quarter was driven by strong Oncology traction which grew 69% QoQ. Formulations growth was mainly volume driven with new launches in the US. CDMO growth was stable and the company is incrementally getting new inquiries across value chains. CDMO portfolio currently consists of 70 active projects across value chain. CDMO growth for FY24 excluding Covid projects stood at 24%. The management expects improvement in margins in FY25 and is prioritizing capex in high value chain segments. Note that ~40% of capex across CDMO/API/FDF (Rs 2600 crore in total) is yet to optimally scale up.
Impact: Neutral