Consolidated profit before tax was at Rs 147.14 crore in Q4 FY23, registering a growth of 51% from Rs 301.71 crore posted in the corresponding quarter last year.

EBITDA de-grew 28% year on year to Rs 287 crore in the quarter ended 31 March 2023. EBITDA margin reduced to 20.8% in Q4 FY23 as compared to 27.9% reported in the same period a year ago.

Laurus Labs' formulation business slipped 20% to Rs 393 crore in Q4 FY23 from Rs 491 crore recorded in Q4 FY22. The decline in the segment was mainly due to overall softness in ARV demand/weak price. Developed market growth remained stable with higher generic volumes.

Income from API business jumped 32% to Rs 714 crore in Q4 FY23 as against Rs 539 crore registered in Q4 FY22.

The revenue from company's synthesis division slumped 37% YoY in Q4 FY23 to Rs 228 crore. The pharma firm said that de-growth was due to completion of the supplies related to large purchase order in December 2022. However, its Q4 baseline business saw healthy momentum overall and project pipeline continued to scale up. Expansion in integrated CDMO capabilities (including R&D center and Animal Health) on track to seize market opportunities, it added.

The bio division recorded revenue of Rs 46 crore in Q4 FY23, up by 31% on YoY basis. The company said that the growth was driven by improvement in production downtime and traction in CDMO business. New site planned to strengthen Laurus' capabilities in AOF proteins and growth factors.

On a full year basis, the company reported a 4.5% decrease in consolidated net profit to Rs 790.11 crore despite of 22.39% increase in net sales to Rs 6,040.55 crore in FY23 over FY22.

Full year performance was driven by non-ARV business, especially CDMO and API business which compensated for FDF sales decline. Research and development (R&D) spend during the year stood at Rs 211 crore (3.5% of revenues), up by 4% YoY.

Dr. Satyanarayana Chava, founder and chief executive officer, said, “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.”

V V Ravi Kumar, executive director & chief financial officer said, “We achieved Rs 6,041 crore in revenues, representing 22% revenues growth, and Rs 1,594 crore 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, Rs 1,381 crore in revenues, representing 3% revenues decline, and Rs 287 crore EBITDA, resulting in 20.8% margin.”

Meanwhile, the board of directors recommended a dividend of Rs 1.20 per share for the financial year ended 31 March 2023. The record date for the said dividend is 10 May 2023 and it will be paid on or after 18 May 2023.

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.