I was listening into the last quarter interview by Dr. Chava on Bloomberg. He clarifies that the last quarter ARV sales dropped because of low pricing by competitors. He told the exact same thing in this quarter as well. Seems like he didn’t take the required actions last quarter to course correct leading to the 10% drop in guidance.
https://www.bloomberg.com/news/videos/2022-07-28/laurus-labs-ceo-on-indian-opportunities-video
This looks like a fundamental problem in ARV segment, Even if they bid lower on newer contracts and win it, they will have to deal with lower margins. The 900 million dollar guidelines does look like an uphill task from here.
The silver lining to this is that Laurus labs has diversified themselves and they are able to balance the loss in ARV there.
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