Results     24-Jan-24
Analysis
Laurus Labs
NP down 88.60%
For the quarter ending Dec 2023, consolidated Net sales (including other operating income) of Laurus Labs has declined 22.65% to Rs 1194.92 crore compared to quarter ended Dec 2022.  Operating profit margin has declined from 26.12% to 15.18%, leading to 55.05% decline in operating profit to Rs 181.42 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 39.87% to 48.73%.   Purchase of finished goods cost fell from 3.55% to 1.35%.   Employee cost increased from 10.10% to 11.91%.   Other expenses rose from 18.82% to 24.07%.   

Other income rose 69.93% to Rs 2.43 crore.  PBIDT fell 54.60% to Rs 183.85 crore.  Provision for interest rose 18.99% to Rs 50.82 crore.  

PBDT fell 63.28% to Rs 133.03 crore.  Provision for depreciation rose 16.54% to Rs 98.41 crore.  

Profit before tax down 87.54% to Rs 34.62 crore.  Share of profit/loss was 251.92% lower at Rs -1.83 crore.  Provision for tax was expense of Rs 9.45 crore, compared to Rs 74.79 crore.  Effective tax rate was 28.82% compared to 26.97%.

Net profit attributable to owners of the company decreased 88.60% to Rs 23.14 crore.  

Promoters’ stake was 27.19% as of 31 December 2023 ,compared to 27.20% as of 31 December 2022 .  Promoters pledged stake was 0.04% as of 31 December 2023 ,compared to 0.04% as of 31 December 2022 .  


For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Laurus Labs has declined 22.72% to Rs 3601.16 crore.  Operating profit margin has declined from 28.04% to 14.88%, leading to 58.98% decline in operating profit to Rs 536.01 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 43.71% to 48.29%.   Purchase of finished goods cost fell from 3.11% to 1.85%.   Employee cost increased from 9.20% to 12.63%.   Other expenses rose from 17.05% to 23.10%.   

Other income rose 82.05% to Rs 7.81 crore.  PBIDT fell 58.52% to Rs 543.82 crore.  Provision for interest rose 18.14% to Rs 132.4 crore.  

PBDT fell 65.68% to Rs 411.42 crore.  Provision for depreciation rose 19.09% to Rs 282.33 crore.  

Profit before tax down 86.58% to Rs 129.09 crore.  Share of profit/loss was 354.84% lower at Rs -5.64 crore.  Provision for tax was expense of Rs 36.2 crore, compared to Rs 272.4 crore.  Effective tax rate was 29.32% compared to 28.36%.

Minority interest increased 124.27% to Rs 2.31 crore.  Net profit attributable to owners of the company decreased 87.64% to Rs 84.94 crore.  

Promoters’ stake was 27.19% as of 31 December 2023 ,compared to 27.20% as of 31 December 2022 .  Promoters pledged stake was 0.04% as of 31 December 2023 ,compared to 0.04% as of 31 December 2022 .  


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.  

Other Highlights

FDF business generated revenue of Rs 984 crore during 9M FY24, up by 32% due to higher offtake in ARV business and growth in Developed markets portfolio. In Q3 FY24, Generic FDF business increased 47% YoY.

API business reported revenue of Rs 1800 Crore during 9M FY24, decreased by 5% YoY.

CDMO-Synthesis business reported revenues of Rs 686 crore during 9MFY24, decreased by 65% YoY. Q3 FY24 revenue declined by 67% YoY to Rs 212 crore. Decline was driven from large supply contract execution last year.

Laurus Bio division reported revenues of Rs 131 crore during 9M FY24, up by 66%. Q3 FY24 revenue increased by 91% YoY to Rs 42 crore. Growth was led by diversifying CDMO services into an expanding customer base.

Capex for 9M FY24 was Rs 576 crore, representing 16% of Revenue.

Company recorded R&D spent of Rs 67 crore, representing 5.6% of Revenue in Q3 FY24. 

Company Cumulatively filed 39 ANDAs in US with 16 PARA IV filings including 11 FTF opportunities.

In 9M FY24, generic FDF contributed 27% of total revenue, CDMO 19%, API 50% and Bio 4%.


Management Comments :
Founder and Chief Executive Officer Dr. Satyanarayana Chava 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. We are also advancing on our ESG agenda”

V V Ravi Kumar, Executive Director & Chief Financial Officer said; “During Q3 FY24, we achieved ? 1,195 crs in revenues, representing 23% decline. Excluding the large CDMO PO, the underlying revenue growth was 6% YoY. EBITDA stood at ? 183 crs, 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 ? 576 crs 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, ? 3,601 crs in revenues, representing 23% revenues decline. Excluding the large CDMO PO the underlying revenue growth was 11% YoY. EBITDA stood at ? 539 crs resulting in 15.0% margin.


Laurus Labs : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202312202212Var.(%)202312202212Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,194.921,544.82-22.653,601.164,659.65-22.726,040.554,935.5722.39
OPM (%)15.1826.12-1,094 bps14.8828.04-1,316 bps26.3628.82-246 bps
OP181.42403.57-55.05536.011,306.65-58.981,592.191,422.4311.93
Other Inc.2.431.4369.937.814.2982.056.0015.30-60.78
PBIDT183.85405.00-54.60543.821,310.94-58.521,598.191,437.7311.16
Interest50.8242.7118.99132.40112.0718.14165.17102.3961.31
PBDT133.03362.29-63.28411.421,198.87-65.681,433.021,335.347.31
Depreciation98.4184.4416.54282.33237.0719.09324.08251.4928.86
PBT34.62277.85-87.54129.09961.8-86.581108.941083.852.31
Share of Profit/(Loss) from Associates-1.83-0.52-251.92-5.64-1.24-354.84-3.21-0.2-1,505.00
PBT before EO32.79277.33-88.18123.45960.56-87.151105.731083.652.04
EO Income00-00-00-
PBT after EO32.79277.33-88.18123.45960.56-87.151105.731083.652.04
Taxation9.4574.79-87.3636.2272.4-86.71312.3251.4224.21
PAT23.34202.54-88.4887.25688.16-87.32793.43832.23-4.66
Minority Interest (MI)0.2-0.5PL2.311.03124.273.324.71-29.51
Net profit23.14203.04-88.6084.94687.13-87.64790.11827.52-4.52
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations23.14203.04-88.6084.94687.13-87.64790.11827.52-4.52
EPS (Rs)*0.433.77-88.601.5812.75-87.6414.6615.35-4.52
* EPS is on current equity of Rs 107.79 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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