Laurus Labs – Can Business Transform to Next Level?

Laurus Q1 FY23 Results Press release

 Revenue at ₹ 1,539 crs, up 20 % (Y-o-Y)
 EBITDA ₹ 454 crs, increased by 14 % (Y-o-Y)
 EBITDA margins at 29.5 %
 PAT at ₹ 251 crs, increased by 4 % (Y-o-Y)
 PAT margins at 16.3 %
 EPS (Diluted) for the period at ₹ 4.7 per share (not annualised)

Chief Executive Officer Dr. Satyanarayana Chava stated
“Laurus Lab’s performance in the first quarter of the current financial year reflects our efforts towards strengthening and diversifying our business by an increased focus on Non-ARV APIs and Formulations and high-growth CDMO segments. This strong momentum has been delivered because of our efforts toward a sustainable supply chain, capacity creation, and on-time delivery of products during the current challenging environment. Pricing pressure in ARV APIs and the Formulation business was significant during this quarter, and ARV FDF volumes would increase in the coming quarters. The high-margin CDMO business growth helped the organization deliver very good revenue
and profit.

Business Highlights

Overall
 Total Income for Q1FY23 at ₹ 1,539 crs with 20% growth (Y-o-Y).
 Performance driven by strong traction in Synthesis business (+196% YoY), and Other APIs
which more than compensated for overall ARV business decline
 R & D spent of ₹ 49 crs (3 % of Revenues)

Generic FDF
 FDF business generated revenue of ₹ 349 Cr during Q1, decreased by 33% YoY  Growth was impacted by lower ARV business while Developed market sales stable with higher generic volumes offset by pricing pressure
 During Q1, 1 product dossiers were filed in Developed markets and a total of 3 approvals were
received (including Tentative)
 Cumulatively filed 32 ANDAs in US with 15 PARA IV filings and 11 FTF opportunities
 Brownfield capacity expansion at Unit 2 commissioned during the quarter
Generic API
 API business reported revenue of ₹ 583 Cr during Q1, increased by 6% YoY
 Other APIs sustained strong growth +79% YoY
 Oncology revenues grew at modest pace +5% YoY
 ARV business continue to witness healthy sequential improvement supported by channel stock
easing and better volumes
 Filed 325 patents out of that 192 patents granted as of June’22
 Filed 74 DMFs till date.

Synthesis
 Delivered accelerated growth of 196% during Q1 to ₹ 577 crs
 The growth was supported by solid demand from new and existing clients
 Actively working on over 50 projects and On-going supplies for four commercial projects
 Expansion in CDMO capability on track to include new opportunities and extended service
 Greenfield investment to set up a dedicated R&D center and manufacturing units is progressing
as per our expectations

Bio Division
 Laurus Bio segment was largely stable and clocked Q1 sales of ₹ 30 cr
 Fully operational benefits of new capacities to reflect through FY23
 Continue to work on Improving Products offering and Improving Go-to-market
 Evaluating few land parcel to Create close to 1 million litres fermentation capacity

Investor presentation:
SCO_IS_KM_322072710420 (bseindia.com)

Q1 Results
SCO_IS_KM_322072710420 (bseindia.com)