Laurus Labs -
Q4 FY 24 results and concall highlights -
Sales - 1440 vs 1381 cr
Gross Margins @ 49.8 vs 49.7 pc
EBITDA - 259 vs 287 cr ( margins @ 18 vs 21 pc )
PAT - 76 vs 103 cr
Full Year R&D spends @ 241 vs 211 cr ( @ 4.8 pc of sales )
Segment wise sales -
FDFs - 430 vs 367 cr - volume led recovery in ARVs + new launches in US
APIs - 745 vs 714 cr - led by strong growth in Onco APIs
CDMO - 236 vs 228 cr
Bio - 29 vs 46 cr
Full Year breakup of sales -
ARV - APIs + FDFs - 50 pc
Non ARV APIs - 20 pc
Non ARV FDFs - 10 pc
CDMO - 18 pc
Bio - 2 pc
Capex spends in over last 3 yrs @ 2600 cr. Currently, the company is operating at 0.9 X - asset turns vs its 5 yr avg of 1.1 X asset turns. As this improves, so shall the profitability. FY 24 capex @ 700 cr
Company’s CDMO business has -
70 + active projects under various phases for small molecule APIs
10 commercial projects
20 + active projects for animal APIs
1 active crop protection
Onco APIs reported highest ever Qtly sales at 147 cr in Q4. Cardio, Diabetic API segments are reporting good sequential recovery
Seeing greater RFPs from big Pharma for late stage CDMO products
Animal API facility has started commercial validation batches. Crop science CDMO unit is under construction. Both Crop science and animal API CDMO facilities are already fully committed with innovator companies
Net Debt @ 2368 cr. Likely to come down going forward
These days, there is greater demand for bio-catalysis and continuous flow chemistry from big Pharma due to their ESG commitments. Laurus has built good capacities for both these manufacturing techniques
Additionally, there is clearly a greater thrust from big Pharma to diversify away from China. Same is reflected in greater late stage enquiries that the company is receiving
Capex plan for FY 25 - should be spending around 700-800 cr mainly towards CDMO and Bio business
Likely to see significant revenues from animal API CDMO contract in FY 25. Expecting CDMO business to be 33 pc of total business in next 2-3 yrs !!!( this can drive significant value creation … imho )
Disc: hold a tracking position, intend to add more on dips or in case of CDMO business pick up, not SEBI registered, biased
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