Laurus Laboratories on July 27 reported an 88.8 percent year-on-year drop in consolidated net profit at Rs 28.40 crore in the first quarter of the current financial year. The pharma firm reported a profit of Rs 252.5 crore in the year-ago period.
Revenue came in at Rs 1,181.8 crore, down 23.2 from the Rs 1,539 crore in the year-ago quarter. A CNBC-TV18 poll of brokerages had pegged revenue at Rs 1,308.5 crore and net profit at Rs 87.6 crore.
The company said that revenue was impacted by particularly strong CDMO-Synthesis revenue in the base year, along with quarter-to-quarter variability in API and finished dosage form (FDF) revenue. CDMO is short for contract development and manufacturing organization.
The company reported earnings before interest, taxes, depreciation and amortization (EBITDA) of Rs 166.8 crore during the quarter, 63.2 percent lower than Rs 454 crore in the year-ago period.
The EBITDA margin, too, eroded by 154 basis points to 14.1 percent in April-June from 29.5 percent in the base quarter. The CNBC-TV18 poll had estimated an EBITDA margin of 19.6 percent for the drug maker. One basis point is one-hundredth of a percentage point.
The CDMO synthesis business fell 57 percent YoY due to a large purchase order in the base year.
Laurus Labs retained its sales outlook for FY24 as it expects revenue expansion of base pipeline projects and 2H Animal health contract supplies kick-off in the CDMO (Contract Development and Manufacturing Organization) business. The company also expects growth in existing and new CMO contracts (Diabetic & CV portfolio) across key markets, key product approvals and better visibility in ARV business in generics. It also expects ramp-up of new capacity implemented in the Bio segment.
Going ahead, the Street will watch out for any change in the company's growth guidance for FY24 along with the impact of being selected as the preferred supplier in the Global Fund ARV tender.
The stock closed 1.13 percent higher on the National Stock Exchange at Rs 345.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
