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 Q1FY25 results:

• In Q1FY25 Laurus delivered Rs 1,195 crore Revenues and 1% revenues growth, Softer Q1 performance in-line and is expected to pick up through H2
• Sustained momentum in Key CDMO project delivery while strengthened scientific expertise
• Rs 171 crore EBITDA resulted in a margin of 14.3%, impact from lower asset utilization and upfront cost in growth projects
• Strong gross margins delivered at 55.1% levels, clocking improvement both YoY and sequentially
• CAPEX across prioritised CDMO projects continued, supporting long-term plan to deliver attractive margins and secured customer base
• FY25 outlook maintained; Deliver on medium to long term contracts and commercial opportunity in late-phase NCE projects along with EBITDA margins improvement

Satyanarayana Chava, Founder & Chief Executive Officer commented; “We have begun FY2025 on a positive note, sustaining momentum in our key CDMO clinical projects and demonstrating resilience in financial health. We are leveraging power of our comprehensive technology platform & commercial excellence to advance manufacturing of several clinical programs and maximising the value impact of our integrated model. Q1 results are on expected lines, supported from strong growth in Oncology API and firm demand in ARV offset by slightly subdued performance in other divisions. We have important opportunities ahead of us especially within CDMO division, and we are highly focused on allocating resources and realising them starting H2. Our commitment to disruptive technology in CGT space continued to do well. My confidence is strong and growing that we are taking right step to best position the company for value creation this year and well into future.”

V V Ravi Kumar, Executive Director & Chief Financial Officer commented; “We delivered Rs 1,195 crore in revenues, representing 1% growth, and Rs 171 crore EBITDA, resulting to 14.3% margin. While we continue to clock Gross margins of 55.1% during the quarter, the operating results was mainly affected from prioritised resource allocation into delivering several clinical phase complex projects partly causing lower asset utilization, quarter to quarter order cyclicality and dilution from growth projects. We expect performance to pick up mostly from H2, supported by on hand project deliveries. We remain committed to FY2025 outlook and our key CAPEX projects into high value business segments is advancing well to drive medium and long term growth.”

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