Laurus Labs reported a 23% fall in its consolidated net profit for the fourth quarter ended March 31, 2022, at ₹230 crore.
Revenues rose just 1%, at ₹1,425 crore in the same period while profit after tax (PAT) fell 25% on the back of rise in expenses by 11%, the company said.
The company's PAT stood at ₹302 crore in the given quarter and expenses were at 1,124 crore.
Pure profits, or EBITDA, too, fell 17% and EBITA margins shrunk nearly 28%, it said.
The company operates in the segment of generic APIs & FDFs (formulations), custom synthesis and biotechnology. Major focus in APIs is on ARV, oncology, and other APIs.
The results of the current financial year so far reflects operational resilience overall with better mix and sustained profitability despite of lower revenue from ARV APIs and formulations. Results impacted by lower sales of ARV APIs and formulations due to stocking at channel partners and it’s expected to improve hereon. However, Strong momentum in their CDMO business continued this quarter with over 60% growth and seen healthy rebound in API business (ex-ARV) with activity levels picking up. Company continues to sharpen their execution as they focus on positioning their businesses for sustainable long-term growth.
• Company has 11 manufacturing units (six FDA approved sites) with 73 DMFs, 31 ANDAs filed (15 Para IV, 10 first to file) and 184 patents granted
• Laurus acquired Richore Life Sciences to diversify in area of recombinant animal origin free products, enzymes as well as building biologics CDMO
Key growth parameters
• Synthesis: Well-positioned to meet fast growing global demand for NCE drug substance and drug products. Setting- up dedicated R&D centre (operational FY23) & three greenfield manufacturing units (FY24, FY25)
• Formulations: Product launches in anti-diabetic (FY23) & CV portfolio (FY24) in US & Europe with market opportunity at ~ US$45 billion. Brownfield expansion (Unit-2) by Q1FY23 taking total capacity to 10 billion units
• API: Robust order-book in anti-diabetic, CV & PPI amid capacity expansion in high growth therapeutics with total reactor volume of +7000KL by FY23
• Biologics: Expanding the biologics CDMO at scale. Commercial scale-up of the new fermentation capacity (food proteins). Plans to add 1 million litre fermentation capacity in Phase 1