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For
the quarter ending March 2023, consolidated Net sales (including other operating income) of Laurus Labs has declined 3.08% to Rs 1380.9 crore compared to quarter ended Mar 2022. Operating profit margin has declined from 27.84% to 20.68%, leading to 28.02% decline in operating profit to Rs 285.54 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 39.54% to 40.81%. Purchase of finished goods cost fell from 4.27% to 0.42%. Employee cost increased from 9.80% to 11.50%. Other expenses rose from 16.32% to 22.82%. Other income rose 32.56% to Rs 1.71 crore. PBIDT fell 27.83% to Rs 287.25 crore. Provision for interest rose 73.81% to Rs 53.1 crore. Loan funds rose to Rs 2,015.09 crore as of 31 March 2023 from Rs 1,776.66 crore as of 31 March 2022. Inventories declined from Rs 1,760.30 crore as of 31 March 2022 to Rs 1,684.81 crore as of 31 March 2023. Sundry debtors were higher at Rs 1,580.44 crore as of 31 March 2023 compared to Rs 1,354.18 crore as of 31 March 2022. Cash and bank balance declined from Rs 75.94 crore as of 31 March 2022 to Rs 48.46 crore as of 31 March 2023. Investments rose to Rs 49.90 crore as of 31 March 2023 from Rs 30.81 crore as of 31 March 2022 . PBDT fell 36.28% to Rs 234.15 crore. Provision for depreciation rose 32.35% to Rs 87.01 crore. Fixed assets increased to Rs 3,713.10 crore as of 31 March 2023 from Rs 3,219.39 crore as of 31 March 2022. Intangible assets stood at Rs 246.30 crore. Profit before tax down 51.23% to Rs 147.14 crore. Share of profit/loss was 994.44% lower at Rs -1.97 crore. Provision for tax was expense of Rs 39.9 crore, compared to Rs 69.81 crore. Effective tax rate was 27.49% compared to 23.15%. Minority interest increased 87.70% to Rs 2.29 crore. Net profit attributable to owners of the company decreased 55.32% to Rs 102.98 crore. Equity capital increased from Rs 107.47 crore as of 31 March 2022 to Rs 107.73 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00. Promoters’ stake was 27.20% as of 31 March 2023 ,compared to 27.27% as of 31 March 2022 . Promoters pledged stake was 0.04% as of 31 March 2023
Full year results analysis.
Net sales (including other operating income) of Laurus Labs has increased 22.39% to Rs 6040.55 crore. Operating profit margin has declined from 28.82% to 26.36%, leading to 11.93% rise in operating profit to Rs 1,592.19 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 44.00% to 43.14%. Purchase of finished goods cost fell from 2.83% to 2.59%. Employee cost decreased from 9.73% to 9.65%. Other expenses rose from 15.86% to 18.17%. Other income fell 60.78% to Rs 6 crore. PBIDT rose 11.16% to Rs 1598.19 crore. Provision for interest rose 61.31% to Rs 165.17 crore. Loan funds rose to Rs 2,015.09 crore as of 31 March 2023 from Rs 1,776.66 crore as of 31 March 2022. Inventories declined from Rs 1,760.30 crore as of 31 March 2022 to Rs 1,684.81 crore as of 31 March 2023. Sundry debtors were higher at Rs 1,580.44 crore as of 31 March 2023 compared to Rs 1,354.18 crore as of 31 March 2022. Cash and bank balance declined from Rs 75.94 crore as of 31 March 2022 to Rs 48.46 crore as of 31 March 2023. Investments rose to Rs 49.90 crore as of 31 March 2023 from Rs 30.81 crore as of 31 March 2022 . PBDT rose 7.31% to Rs 1433.02 crore. Provision for depreciation rose 28.86% to Rs 324.08 crore. Fixed assets increased to Rs 3,713.10 crore as of 31 March 2023 from Rs 3,219.39 crore as of 31 March 2022. Intangible assets stood at Rs 246.30 crore. Profit before tax grew 2.31% to Rs 1,108.94 crore. Share of profit/loss was 1,505% lower at Rs -3.21 crore. Provision for tax was expense of Rs 312.3 crore, compared to Rs 251.42 crore. Effective tax rate was 28.24% compared to 23.20%. Minority interest decreased 29.51% to Rs 3.32 crore. Net profit attributable to owners of the company decreased 4.52% to Rs 790.11 crore. Equity capital increased from Rs 107.47 crore as of 31 March 2022 to Rs 107.73 crore as of 31 March 2023. Per share face Value remained same at Rs 2.00. Promoters’ stake was 27.20% as of 31 March 2023 ,compared to 27.27% as of 31 March 2022 . Promoters pledged stake was 0.04% as of 31 March 2023 Cash flow from operating activities increased to Rs 993.90 crore for year ended March 2023 from Rs 911.10 crore for year ended March 2022. Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 990.16 crore, compared to Rs 876.84 crore during the year ended March 2022. Business Highlights
Board
approved 2nd interim dividend of Rs 1.20 (60%) per equity share of Rs 2 each,
for the Financial Year 2022-23. Company has fixed May 10, 2023 as “Record Date”
for determining the eligibility of the Shareholders. The Dividend amount will
be paid on or after May 18, 2023.
In
FY23, Generic FDF business fell 39% to Rs 1140 crore on YoY basis. During Q4
FY23, the revenues decreased by 20% YoY to Rs 393 crore.
API
business reported revenue of Rs 2609 Crore during FY23, increased by 28% YoY.
During Q4 FY23 the revenues increased by 32% YoY to Rs 714 crore.
CDMO in FY23 delivered robust growth of
136% YoY at Rs 2,167 crore driven by
delivery of large purchase order and accelerated demand from existing and new
clients.
Other APIs segment reported strong growth
in Q4 and FY23 at +38% and +56% respectively, following ramp up in the new
contract supplies.
Laurus Bio segment Delivered solid recovery
with +31% YoY growth in Q4 FY23. Overall FY23 sales grew +25% YoY to ?Rs 125
crore.
Company recored R&D spent of Rs 211
crore, representing 3.5% of Revenue in FY23.
In FY23, generic FDF contributed 7% of
total revenue, CDMO 36%, ARV 37%, API 18% and Bio 2%.
Management Comments :
Founder and Chief Executive Officer Dr.
Satyanarayana Chava stated FY23 has been a year of significant achievement and
meaningful progress despite a challenging macro environment. We delivered
strong full year results driven by robust underlying business performance in
our key growth pillars CDMO, and Non-ARVs generic portfolio. Our R&D driven
commercial strategy continued to make advancements at speed and we are making efficient
use of strongly linked technology platform and manufacturing excellence to
seize new business opportunities, and widening our target market. Our
investment programs are well on track with a focus on long-term success. We are
also continuing to drive forward our sustainability agenda. We are entering
FY24 with greater confidence that we’re creating a sustainable engine that will
bring forth greater business resilience and generate long term sustainable
value for stakeholders well into next decade”
V V Ravi Kumar, Executive Director &
Chief Financial Officer said; “We delivered good financial performance for FY23
in line with our revised outlook. We achieved ? 6,041 crs in revenues,
representing 22% revenues growth, and ? 1,594 crs EBITDA, equating to 26.4%
margin. Business mix had positively contributed to margins but the negative
operating leverage on new capacities commissioned, higher inflation and Fx
impact let to the overall margin fall compared to last year. We are working on
several initiatives around efficiency improvement, which should partly mitigate
its impact in FY24. Our future capex projects towards strengthening CDMO and
Non-ARV generics are advancing as per schedule and Debt leverage position
remains comfortable. Our Q4 results was challenging driven by steep fall in
CDMO revenues and higher upfront cost of Capex projects and R&D Projects.
We achieved, ? 1,381 crs in revenues, representing 3% revenues decline, and ?
287 crs EBITDA, resulting in 20.8% margin.”
| Laurus Labs : Consolidated Results | | | Quarter ended | Year ended |
|---|
| Particulars | 202303 | 202203 | Var.(%) | 202303 | 202203 | Var.(%) |
|---|
| Net Sales (including other operating income) | 1,380.90 | 1,424.83 | -3.08 | 6,040.55 | 4,935.57 | 22.39 | | OPM (%) | 20.68 | 27.84 | -716 bps | 26.36 | 28.82 | -246 bps | | OP | 285.54 | 396.71 | -28.02 | 1,592.19 | 1,422.43 | 11.93 | | Other Inc. | 1.71 | 1.29 | 32.56 | 6.00 | 15.30 | -60.78 | | PBIDT | 287.25 | 398.00 | -27.83 | 1,598.19 | 1,437.73 | 11.16 | | Interest | 53.10 | 30.55 | 73.81 | 165.17 | 102.39 | 61.31 | | PBDT | 234.15 | 367.45 | -36.28 | 1,433.02 | 1,335.34 | 7.31 | | Depreciation | 87.01 | 65.74 | 32.35 | 324.08 | 251.49 | 28.86 | | PBT | 147.14 | 301.71 | -51.23 | 1108.94 | 1083.85 | 2.31 | | Share of Profit/(Loss) from Associates | -1.97 | -0.18 | -994.44 | -3.21 | -0.2 | -1,505.00 | | PBT before EO | 145.17 | 301.53 | -51.86 | 1105.73 | 1083.65 | 2.04 | | EO Income | 0 | 0 | - | 0 | 0 | - | | PBT after EO | 145.17 | 301.53 | -51.86 | 1105.73 | 1083.65 | 2.04 | | Taxation | 39.9 | 69.81 | -42.84 | 312.3 | 251.42 | 24.21 | | PAT | 105.27 | 231.72 | -54.57 | 793.43 | 832.23 | -4.66 | | Minority Interest (MI) | 2.29 | 1.22 | 87.70 | 3.32 | 4.71 | -29.51 | | Net profit | 102.98 | 230.5 | -55.32 | 790.11 | 827.52 | -4.52 | | P/(L) from discontinued operations net of tax | 0 | 0 | - | 0 | 0 | - | | Net profit after discontinued operations | 102.98 | 230.5 | -55.32 | 790.11 | 827.52 | -4.52 | | EPS (Rs)* | 1.91 | 4.28 | -55.32 | 14.67 | 15.36 | -4.52 | | | * EPS is on current equity of Rs 107.73 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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