Drug maker Laurus Labs posted a net profit of Rs 242 crore, a 325 percent year-on-year (YoY) jump, in the second quarter ended September, led by higher sales of anti-HIV drugs and new launches in various markets.
The company reported a net profit of Rs 56.6 crore during the same period of the previous year.
Revenues rose 60 percent YoY to Rs 1,139 crore in Q2FY21, compared to Rs 713.8 crore last year.
This was the highest-ever quarterly profit and revenues reported by the company. Shares of Laurus Labs rose 2.39 percent to close at Rs 330.35 on BSE, while the benchmark Sensex declined 0.43 percent to end at 39,749.85 points.
The EBITDA jumped 172 percent to Rs 378 crore, representing a margin of 33 percent.
“Our consolidated revenue for the quarter increased by 60 percent driven by growth in all the divisions," said Satyanarayana Chava – Founder and CEO of Laurus Labs.
"Our EBITDA margins continue to improve with better operating leverage, and our profitability has also
improved substantially," Chava said.
The company's formulations business showcased a growth of over 180 percent for the quarter, mainly led by higher sales from the tender business of anti-HIV drugs in lower and middle-income countries (LMIC).
The company said it has a strong order book for the coming quarters.
It launched antiretroviral combination drugs TLE400 in LMIC markets and TLE400 & TLE600 in the US market.
TLE is a fixed-dose combination containing Efavirenz, Lamivudine and Tenofovir Disoproxil Fumarate tablets.
The formulation division now contributes 40 percent of overall revenues.
The generic API division also recorded a growth of 22 percent for the quarter, led by higher growth in
antiretroviral active pharmaceutical ingredient (API) business owing to higher volumes.
The company's custom synthesis continued to maintain its growth trajectory with a healthy pipeline and good visibility.
"With a clear roadmap, and adequate and responsible capital allocation for sustainable long-term vision, I
am very optimistic about growth in the coming years,” Chava added.
The company said it will undertake larger green-field and brown-field CAPEX for all the divisions and initiate new manufacturing units on a greenfield basis.
"We are confident that the new capex will have a shorter payback period,” VV Ravi Kumar, ED & Chief Financial Officer of the company, said.
Laurus had 2 product validations completed for formulation apart from filling of 26 abbreviated new drug applications (ANDAs) and new drug applications (NDAs). So far it received final approvals for 8 products received and tentative approvals for 8 more products.
The company declared an interim dividend of Rs 0.80 per share on a face value of Rs 2 per share.