Drug maker Laurus Labs on July 29 posted a net profit of Rs 241 crore, a 40 percent year-on-year (YoY) jump for the first quarter ended June (Q1FY22), led by higher sales of anti-HIV formulations and higher momentum in custom synthesis business.
The company had reported a net profit of Rs 172 crore during the same period of the previous year.
Revenues rose 31.3 percent YoY to Rs 1,279 crore in Q1FY22, compared to Rs 974 crore last year.
The earnings before interest, tax, depreciation and ammortisation (EBITDA) margins expanded 210 basis points YoY to 31.3 percent; however, on sequential basis (QoQ), Laurus' EBITDA margins were down by 250 basis points.
Shares of Laurus Labs dropped 2.29 percent to close at Rs 604.65 on BSE, while the benchmark Sensex rose 0.40 percent to end at 52,653.07 points.
Laurus spent 3.8 percent of its sales or Rs 49 crore on R&D in Q1 FY22.
The generic formulations contributed Rs 521 crore or 41 percent of revenues. The generic formulation sales comes from the tender business of anti-HIV drugs in lower and middle-income countries (LMIC).
Laurus said it has completed validation for four products apart from filling of 28 ANDAs (abbreviated new drug applications) and NDAs (new drug applications) in total. The active pharmaceutical ingredient (API) sales that contributed 43 percent of revenues.
“We have started the financial year 22 with strong growth in FDF, with the strong demand in ARV’s for LMIC region and our portfolio expansion in developed markets. Our Synthesis business retained its growth momentum powered by the increased business from the existing clients and new clients; the segment registered strong growth with 95% YoY growth , with ongoing commercial supplies for four products," said Satyanarayana Chava – Founder and CEO of Laurus Labs.
"In contrast, revenue from our other API witnessed a slowdown, and the growth is expected to restore from Q2 FY22, we remain confident of maintaining a growth trajectory in the generic API business for FY22," Chava said.
Chava said that Laurus Bio - the biotech division started contributing to the revenue and would add more from Q2FY22, with the new fermentation capacities added in recombinant food protein.
"Our Gross Margins continue to grow on the back of a better product mix and improved sales from all the segments. Our performance focus is on growth driven by superior execution and completing our future ready strategy with manufacturing capacity expansions - a combination of brown and greenfield in API, FDF, and Synthesis divisions. With sustained business opportunities, we remain confident of achieving sustainable return ratios in the FY2022-23 and beyond," said VV Ravi Kumar, ED & Chief Financial Officer of the company, said.
