Capitaline

Results 28-Jul-23

Analysis

Laurus Labs

NP down 90.11%

For the quarter ending June 2023, consolidated Net sales (including other operating income) of Laurus Labs has declined 23.21% to Rs 1181.79 crore compared to quarter ended June 2022. Operating profit margin has declined from 29.51% to 14.11%, leading to 63.29% decline in operating profit to Rs 166.72 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 44.66% to 45.61%. Purchase of finished goods cost fell from 3.23% to 2.29%. Employee cost increased from 8.94% to 13.94%. Other expenses rose from 16.46% to 23.63%.

Other income rose 105.71% to Rs 3.6 crore. PBIDT fell 62.64% to Rs 170.32 crore. Provision for interest rose 33.98% to Rs 39.19 crore.

PBDT fell 69.27% to Rs 131.13 crore. Provision for depreciation rose 27.91% to Rs 90.55 crore.

Profit before tax down 88.60% to Rs 40.58 crore. Share of profit/loss was 419.35% lower at Rs -1.61 crore. Provision for tax was expense of Rs 12.18 crore, compared to Rs 103.34 crore. Effective tax rate was 31.25% compared to 29.06%.

Minority interest increased 104.21% to Rs 1.94 crore. Net profit attributable to owners of the company decreased 90.11% to Rs 24.85 crore.

Promoters’ stake was 27.20% as of 30 June 2023 ,compared to 27.27% as of 30 June 2022 . Promoters pledged stake was 0.04% as of 30 June 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 3,700.17 crore as of 31 March 2023 from Rs 3,219.39 crore as of 31 March 2022. Intangible assets increased from Rs 246.30 crore to Rs 259.23 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.

Other Highlights

In Q1 FY24, Generic FDF business fell 18% to Rs 285 crore on YoY basis, due to seasonally lower offtake in ARV business coupled with weak pricing.

API business reported revenue of Rs 597 Crore during Q1 FY24, increased by 2% YoY.

CDMO in Q1 FY24 declined by 57% YoY to Rs 250 crore due to comparison with Q1 FY23 given large PO supplies last year.

Laurus Bio segment Delivered growth of +67% YoY in Q1 FY24.

Company expects to spend Rs1000 crore in FY24 Capex. Q1 FY24 Capex was reported at Rs 203 crore; 17% of Revenue.

Company recorded R&D spent of Rs 47 crore, representing 4% of Revenue in Q1 FY24.

In Q1 FY24, generic FDF contributed 24% of total revenue, CDMO 21%, API 51% and Bio 4%.

Management Comments :
Founder and Chief Executive Officer Dr. Satyanarayana Chava stated “While our operating results this quarter were primarily impacted by lower sales, operational deleverage and elevated expenses, the underlying demand for key growth portfolio within Non-ARVs generics and CDMO progress remains strong and healthy. ARV business have incrementally stabilised on overall basis and therefore we remain optimistic in our H2 growth prospects as indicated earlier. During the quarter, Laurus continued to advance its R&D driven commercial strategy by successful signing its first multi-year commercial partnership in Crop science and further deepening commitment into emerging CGT technology platform. Our CDMO growth projects are on track with Animal health manufacturing block commissioned recently and dedicated R&D centre coming online in late FY24. We remain committed to ensuring greater business resilience and long term performance, with growing scientific capabilities remaining the source of our company’s energy and value creation.”

Commenting on the results, V V Ravi Kumar, Executive Director & Chief Financial Officer said; “We delivered subdued financial performance for Q1FY24. We achieved ? 1,182 crs in revenues, representing 23% decline, and ? 168 crs EBITDA, resulting to 14.2% margin. Performance mainly affected by operational deleverage, material drop in the CDMO business, price fall in ARV portfolio over last year. We are anticipating rebound from H2, with recovering revenue trend, positives from cost improvement programs and raw material price stabilisation. Our future capex projects towards strengthening CDMO and Bio division is advancing as per schedule and Debt leverage position remains comfortable”

Laurus Labs : Consolidated Results

	Quarter ended			Year ended
Particulars	202306	202206	Var.(%)	202303	202203	Var.(%)
Net Sales (including other operating income)	1,181.79	1,538.94	-23.21	6,040.55	4,935.57	22.39
OPM (%)	14.11	29.51	-1,540 bps	26.36	28.82	-246 bps
OP	166.72	454.17	-63.29	1,592.19	1,422.43	11.93
Other Inc.	3.60	1.75	105.71	6.00	15.30	-60.78
PBIDT	170.32	455.92	-62.64	1,598.19	1,437.73	11.16
Interest	39.19	29.25	33.98	165.17	102.39	61.31
PBDT	131.13	426.67	-69.27	1,433.02	1,335.34	7.31
Depreciation	90.55	70.79	27.91	324.08	251.49	28.86
PBT	40.58	355.88	-88.60	1108.94	1083.85	2.31
Share of Profit/(Loss) from Associates	-1.61	-0.31	-419.35	-3.21	-0.2	-1,505.00
PBT before EO	38.97	355.57	-89.04	1105.73	1083.65	2.04
EO Income	0	0	-	0	0	-
PBT after EO	38.97	355.57	-89.04	1105.73	1083.65	2.04
Taxation	12.18	103.34	-88.21	312.3	251.42	24.21
PAT	26.79	252.23	-89.38	793.43	832.23	-4.66
Minority Interest (MI)	1.94	0.95	104.21	3.32	4.71	-29.51
Net profit	24.85	251.28	-90.11	790.11	827.52	-4.52
P/(L) from discontinued operations net of tax	0	0	-	0	0	-
Net profit after discontinued operations	24.85	251.28	-90.11	790.11	827.52	-4.52
EPS (Rs)*	0.46	4.67	-90.11	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

Previous News

Laurus Labs Ltd rises for third consecutive session
( Hot Pursuit - 02-Apr-24 13:05 )

Board of Laurus Labs recommends interim dividend
( Corporate News - 21-Oct-23 09:59 )

Laurus Labs Ltd up for third straight session
( Hot Pursuit - 03-May-23 13:05 )

Laurus Labs slips after flash fire occurs at Andhra API plant
( Hot Pursuit - 27-Dec-22 10:13 )

Laurus Labs fixes record date for interim dividend
( Market Beat - Reports 20-Oct-23 17:57 )

Laurus Labs intimates of a fire accident at its API plant in Visakhapatnam
( Corporate News - 27-Dec-22 09:34 )

Laurus Labs consolidated net profit declines 43.66% in the December 2021 quarter
( Results - Announcements 27-Jan-22 15:28 )

Laurus Labs Ltd soars 1.38%, up for fifth straight session
( Hot Pursuit - 10-Aug-22 13:00 )

Laurus Labs declines after recording 44% YoY fall in Q3 PAT
( Hot Pursuit - 27-Jan-22 15:40 )

Laurus Labs director resigns
( Corporate News - 20-Oct-23 18:03 )

Laurus Labs announces board meeting date
( Corporate News - 20-Jan-22 12:41 )