Profit before tax declined 25% to Rs 302 crore in Q4 FY22 as against Rs 401 crore in Q4 FY21. Profitability was dented after the company reported an 11% increase in total expenses to Rs 1,124 crore in Q4 FY22 over Q4 FY21.

EBITDA in Q4 FY22 stood at Rs 398 crore, down by 17% from Rs 477 crore in Q4 FY21. EBITDA margin declined to 27.9% in Q4 FY22 from 33.8% posted in Q4 FY21.

On the segmental revenue front, the company's Formulation business generated income of Rs 491 crore, rising 14% year on year from Q4 FY21. Income from API business fell by 32% to Rs 539 crore in Q4 FY22 over Q4 FY21. The synthesis division delivered strong growth of 105% year on year in Q4 FY22 to Rs 360 crore. The bio division recorded revenue of Rs 35 crore in Q4 FY22 steeply higher than Rs 9 crore posted in Q4 FY21.

Commenting on the results announcement, V V Ravi Kumar, ED & chief financial officer of the company said, “Our Revenues have grown 3% to Rs 4,936 crore, driven by impressive growth in CDMO business, and healthy FDF performance. EBITDA came at Rs 1,436 crore with sustained EBITDA margins of 29% as better mix offset negative operating leverage. We continue to advance on key capex projects and Debt leverage position remains comfortable. On QoQ basis our Q4 results were encouraging, revenue increased by 38% to Rs 1,425 crore. EBITDA was up by 37% to Rs 398 crore and EBITDA margins stood healthy at 28%.”

Commenting on the highlights, Dr. Satyanarayana Chava, founder and chief executive officer of Laurus Labs said, “We have continued to significantly built on manufacturing and R&D capabilities and accelerating efficiencies to enhance our strategic value proposition which should reflect in our performance in coming years. Sequentially, Our Q4 results have improved substantially on revenue across key business verticals. Growth in ARV APIs and formulations have started to rebound and our CDMO-synthesis business continued to deliver solid performance both for the quarter and FY22 clocking 105% and 77% growth. During the year, we have brought new capacity on line and adding more capacities in high growth therapeutics which should support API business (ex-ARV) returning to growth trajectory. We would continue to fortify resilience with focus to deliver long term sustainable growth”.

On a full year basis, the company reported a 16% decrease in net profit to Rs 828 crore on a 3% increase in net sales to Rs 4,936 crore in FY22 over FY21.

Meanwhile, the board of directors recommended an interim dividend of Rs 1.20 per share for the financial year ended 31 March 2022. The record date for the said dividend is 11 May 2022.

Laurus Labs is a fully integrated pharmaceutical and biotechnology company, with a leadership position in generic Active Pharmaceutical Ingredients (APIs) and a major focus on anti-retroviral, Hepatitis C, and oncology drugs.

Shares of Laurus Labs lost 1.19% to end at Rs 571.90 on BSE.