Revenue from operations stood at Rs 1,194.92 crore in Q3 FY24, down 22.65% from Rs 1544.82 crore posted in Q3 FY23. The revenue was impacted particularly from strong CDMO and API revenues in base year offset by favorable FDF and Bio.

Profit before tax slumped 87.54% year on year to Rs 34.62 crore in the quarter ended 31 December 2023.

EBITDA was at Rs 183 crore in the third quarter of FY24, registering a de-growth of 55% YoY. EBITDA margin reduced to 15.3% in Q3 FY24 as compared to 26.1% reported in the same period a year ago.

Research and development (R&D) spends reported at Rs 67 crore and around 5.6% of revenues; higher spends partly due to ongoing initiative in CGT space.

Laurus Labs' formulation business grew by 47% to Rs 367 crore in Q3 FY24 from Rs 249 crore recorded in Q3 FY23. The growth was driven by low base last year and stable pricing. Underlying demand trend remains healthy with new tender wins. Increased market share driving developed market revenue, said the firm.

Income from API business decreased 9% YoY to Rs 574 crore, mainly due to transitionary shipment impact and subdued pricing in other APIs, partially offset by strong Onco momentum (+18% YoY).

The revenue from company's CDMO-Synthesis division slumped 67% YoY in Q3 FY24. The pharma firm said that the decline was driven from large supply contract execution last year.

The bio division’s revenue surged 91% YoY to Rs 42 crore during the quarter. The growth was supported by diversifying CDMO services into an expanding customer base.

On nine-months basis, the company’s consolidated net profit dropped 87.64% to Rs 84.94 crore on 22.72% decrease in revenue to Rs 3,601.16 crore in 9M FY24 over 9M FY23.

Dr. Satyanarayana Chava, founder and chief executive officer, stated, “While Q3 headline results were subdued, the underlying financial strength of our businesses and demand visibility have remained resilient. The positive momentum in FDF, Onco APIs and Bio division was more than offset by transient CDMO-Synthesis and Other APIs weakness. Momentum in our CDMO pipeline and RFP flows have continued with increased commercial opportunities for several late phase NCE projects.

We are advancing our strategic priorities to build greater business resilience with a clear focus on accelerating scientific advantage and commercial excellence to address needs of customers and create sustainable value for patients and shareholders over the long term. Our investment into innovative CGT momentum had continued with NexCAR19TM commercially launched in India and further making rapid progress on commercial collaboration.”

V V Ravi Kumar, executive director & chief financial officer said, “During Q3 FY24, we achieved Rs 1,195 crore in revenues, representing 23% decline. Excluding the large CDMO PO, the underlying revenue growth was 6% YoY. EBITDA stood at Rs 183 crore, resulting to 15.3% margin. While Gross margins was healthy at 54.3% our EBIDTA margin has remain compressed due to higher spends on growth projects. We expect overall business momentum to pick, supported from healthy order book and execution on strategic manufacturing partnerships along with ongoing realisation of cost initiatives driving improvement in operational results.

In 9M, Laurus Lab invested a total of Rs 576 crore capex and we are on track to execute on our future capex as scheduled. We will continue to prioritize investments in our business and growing pipeline to drive near and long-term growth across our portfolio. Our 9M operating results was challenging driven by steep fall in CDMO revenues, Price erosion in ARV portfolio over last year and operational deleverage from higher upfront cost of Capex & R&D projects. We achieved, Rs 3,601 crore in revenues, representing 23% revenues decline. Excluding the large CDMO PO the underlying revenue growth was 11% YoY. EBITDA stood at Rs 539 crore resulting in 15 % margin.”

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, oncology drugs, cardiovascular, gastro and hepatitis C therapeutics. The company also develops and manufactures oral solid formulations, provide contract research and manufacturing services (CRAMS) to global pharma companies.