For the
quarter ending March 2022, consolidated net sales (including other operating income) of Laurus Labs has increased 0.91% to Rs 1424.83 crore compared to quarter ended March 2021
Operating profit margin has declined from 33.44% to 27.84%, leading to 15.99% decline in operating profit to Rs 396.71 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.08% to 39.54%. Purchase of finished goods cost rose from 2.45% to 4.27%. Employee cost increased from 7.47% to 9.80%. Other expenses rose from 13.01% to 16.32%. Other income fell 71.46% to Rs 1.29 crore. PBIDT fell 16.51% to Rs 398 crore. Provision for interest rose 39.43% to Rs 30.55 crore. Loan funds rose to Rs 1,776.66 crore as of 31 March 2022 from Rs 1,481.69 crore as of 31 March 2021. Inventories rose to Rs 1,760.30 crore as of 31 March 2022 from Rs 1,575.45 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,354.18 crore as of 31 March 2022 compared to Rs 1,306.06 crore as of 31 March 2021. Cash and bank balance rose to Rs 75.94 crore as of 31 March 2022 from Rs 48.46 crore as of 31 March 2021. Investments rose to Rs 30.81 crore as of 31 March 2022 from Rs 3.41 crore as of 31 March 2021 . PBDT fell 19.21% to Rs 367.45 crore. Provision for depreciation rose 22.58% to Rs 65.74 crore. Fixed assets increased to Rs 3,219.39 crore as of 31 March 2022 from Rs 2,286.49 crore as of 31 March 2021. Intangible assets stood at Rs 246.30 crore. Profit before tax down 24.79% to Rs 301.71 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 69.81 crore, compared to Rs 104.25 crore. Effective tax rate was 23.15% compared to 25.99%. Minority interest increased 408.33% to Rs 1.22 crore. Net profit attributable to owners of the company decreased 22.31% to Rs 230.50 crore. Equity capital increased from Rs 107.32 crore as of 31 March 2021 to Rs 107.47 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00. Promoters’ stake was 27.27% as of 31 March 2022 ,compared to 27.45% as of 31 March 2021 .
Full year results analysis.
Net sales (including other operating income) of Laurus Labs has increased 2.54% to Rs 4935.57 crore. Operating profit margin has declined from 32.22% to 28.82%, leading to 8.27% decline in operating profit to Rs 1,422.43 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.16% to 44.00%. Purchase of finished goods cost rose from 1.88% to 2.83%. Employee cost increased from 8.49% to 9.73%. Other expenses rose from 13.12% to 15.86%. Other income fell 35.33% to Rs 15.3 crore. PBIDT fell 8.68% to Rs 1437.73 crore. Provision for interest rose 50.22% to Rs 102.39 crore. Loan funds rose to Rs 1,776.66 crore as of 31 March 2022 from Rs 1,481.69 crore as of 31 March 2021. Inventories rose to Rs 1,760.30 crore as of 31 March 2022 from Rs 1,575.45 crore as of 31 March 2021. Sundry debtors were higher at Rs 1,354.18 crore as of 31 March 2022 compared to Rs 1,306.06 crore as of 31 March 2021. Cash and bank balance rose to Rs 75.94 crore as of 31 March 2022 from Rs 48.46 crore as of 31 March 2021. Investments rose to Rs 30.81 crore as of 31 March 2022 from Rs 3.41 crore as of 31 March 2021 . PBDT fell 11.34% to Rs 1335.34 crore. Provision for depreciation rose 22.64% to Rs 251.49 crore. Fixed assets increased to Rs 3,219.39 crore as of 31 March 2022 from Rs 2,286.49 crore as of 31 March 2021. Intangible assets stood at Rs 246.30 crore. Profit before tax down 16.70% to Rs 1,083.85 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 251.42 crore, compared to Rs 317.29 crore. Effective tax rate was 23.20% compared to 24.39%. Minority interest increased 1,862.50% to Rs 4.71 crore. Net profit attributable to owners of the company decreased 15.87% to Rs 827.52 crore. Equity capital increased from Rs 107.32 crore as of 31 March 2021 to Rs 107.47 crore as of 31 March 2022. Per share face Value remained same at Rs 2.00. Promoters’ stake was 27.27% as of 31 March 2022 ,compared to 27.45% as of 31 March 2021 .
Other Highlights
Board
recommended 2nd interim dividend of Rs 1.20 per equity share of Rs 2 each, for
the Financial Year 2021-22. Company has fixed May 11, 2022 as Record Date for
determining the eligibility of the Shareholders. The Dividend amount will be
paid on or after May 18, 2022.
FY22 Capex
reached 19% of sales, supporting long-term plan to deliver healthy margins
through de-risking growth investments.
R & D
spent stood at of Rs 202 crore, representing 4 % of sales in FY22.
In FY22, Generic
FDF business grew 13% on YoY basis, generating revenue of Rs 1880 Crore. whereas
in Q4 FY22, revenue increased by 14% YoY to Rs 491 crore.
In FY22,
generic FDF contributed 38% of total revenue, Synthesis 19%, ARV api 25%, Bio
2% and Onco & Other APIs 16%.
API business
reported revenue of Rs 2039 Crore during FY22 with de-growth of 22% whereas for
Q4 FY22, revenue de-grown by 32% YoY to Rs 539 crore.
Bio Division
Recorded Rs 100 crore in revenues during FY22, improved materially over
pre-acquisition annualised run-rate.
During the
quarter, ARV business witnessing gradual easing in channel inventory and
improving off-take.
In FY22, Synthesis
delivered strong growth of 77% to Rs 917
crore on YoY basis and 105% in Q4 FY22 YoY to Rs 360 crore.
Progress on
Capacity expansion: Generic FDF segment, brownfield capacity expansion at Unit
2 (to add 4bn units) is on track and expected to get commercialized by Q1FY23.
Management Comments :
Founder and Chief Executive Officer Dr.
Satyanarayana Chava stated “Our FY22 results reflects fairly strong operational
resilience overall with better mix and sustained profitability despite
transient headwinds in our ARV API business and disruption in supply chain. 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”.
Commenting on the results announcement, V V Ravi Kumar, ED
& Chief Financial Officer said; “Even as the world continued to face
unprecedented challenges in the business environment, We have delivered
sustained FY22 results overall. Our Revenues have grown 3% to ? 4,936 crs, driven by impressive growth in CDMO business, and
healthy FDF performance. EBITDA came at ? 1,436 crs
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%.”
| Laurus Labs : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202203 | 202103 | Var.(%) | 202203 | 202103 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,424.83 | 1,411.93 | 0.91 | 4,935.57 | 4,813.51 | 2.54 | | OPM (%) | 27.84 | 33.44 | -560 bps | 28.82 | 32.22 | -340 bps | | OP | 396.71 | 472.19 | -15.99 | 1,422.43 | 1,550.68 | -8.27 | | Other Inc. | 1.29 | 4.52 | -71.46 | 15.30 | 23.66 | -35.33 | | PBIDT | 398.00 | 476.71 | -16.51 | 1,437.73 | 1,574.34 | -8.68 | | Interest | 30.55 | 21.91 | 39.43 | 102.39 | 68.16 | 50.22 | | PBDT | 367.45 | 454.80 | -19.21 | 1,335.34 | 1,506.18 | -11.34 | | Depreciation | 65.74 | 53.63 | 22.58 | 251.49 | 205.07 | 22.64 | | PBT | 301.71 | 401.17 | -24.79 | 1083.85 | 1301.11 | -16.70 | | Share of Profit/(Loss) from Associates | -0.18 | 0 | - | -0.2 | 0 | - | | PBT before EO | 301.53 | 401.17 | -24.84 | 1083.65 | 1301.11 | -16.71 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 301.53 | 401.17 | -24.84 | 1083.65 | 1301.11 | -16.71 | | Taxation | 69.81 | 104.25 | -33.04 | 251.42 | 317.29 | -20.76 | | PAT | 231.72 | 296.92 | -21.96 | 832.23 | 983.82 | -15.41 | | Minority Interest (MI) | 1.22 | 0.24 | 408.33 | 4.71 | 0.24 | 1,862.50 | | Net profit | 230.5 | 296.68 | -22.31 | 827.52 | 983.58 | -15.87 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 230.5 | 296.68 | -22.31 | 827.52 | 983.58 | -15.87 | | EPS (Rs)* | 4.29 | 5.52 | -22.31 | 15.40 | 18.30 | -15.87 | | | * EPS is on current equity of Rs 107.47 crore, Face value of Rs 2, Excluding extraordinary items. | | # EPS is not annualised | | bps : Basis points | | EO : Extraordinary items | | Figures in Rs crore | | Source: Capitaline Corporate Database |
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