Brilliant nos. from Laurus Labs. Some key insights from investor presentation.
- Synthesis revenues have increased to 577 Crores from 190 crores YOY and 360 crores QOQ. Synthesis revenues now same as API’s at 37% of overall sales. Massive diversification in product mix from IPO, when ARV API’s constituted 80% of sales. Clear demonstration by company in identifying where the puck is moving.
- FDF revenues declined by 33% to ₹ 349 cr, mainly dragged by lower ARV business. This is a positive, and corroborates Dr. Chava’s statement of reducing dependence on ARV business, wherein he said by 2025, only 1/3rd of Laurus’ total revenues will come from ARV’s as compared to 55% in FY’22. Even if we assume, the entire FDF sales comes from ARV’s, the contribution of ARV’s to the total sales mix has already reduced to 47%.
- Laurus Synthesis - Target to become Self-Reliant subsidiary by FY2025.Demerger of the synthesis business may be on the cards in a couple of years.
- Laurus Bio
- List item
Strong market dynamics - Alternate food protein
Plan to meaningfully enhance fermentation capability by FY24
With 1 Million fermentation capacity in the next couple of years, Laurus Bio can see an exponential growth trajectory similar to synthesis. Alternate food protein could be a massive opportunity, if we see how the market have evolved in USA and Europe.
All in all, the growth levers are in tact and Laurus is well poised for the next round of scale up from here.
D: Invested.
