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Laurus Labs reports stellar Q1 results

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Capital Market
Last Updated : Jul 30 2020 | 6:04 PM IST

The pharmaceutical company's consolidated net profit surged 1,037.61% to Rs 171.78 crore on 76.96% spurt in revenue from operations to Rs 974.32 crore in Q1 June 2020 over Q1 June 2019.

Consolidated profit before tax (PBT) soared 1,042.18% to Rs 221.47 crore in Q1 June 2020 as against Rs 19.39 crore in Q1 June 2019. Current tax expense for the quarter surged 1,098.24% at Rs 54.76 crore as against Rs 4.57 crore in Q1 June 2019. The result was declared during trading hours today, 30 July 2020.

EBITDA surged 228% to Rs 285 crore during the period under review. EBITDA margin for the quarter stood at 29%. Research & Development (R&D) spent Rs 42 crore, which is 4.3% of sales in Q1 FY21.

Commenting on the Q1 result, Dr Satyanarayana Chava, the founder and chief executive officer (CEO) of Laurus Labs, has said that: "I am very happy to share that we have started the new Financial year on a very strong note. Despite the challenges posed by COVID-19 we have clocked a revenue growth of 77% in the quarter. Our EBITDA has grown over 2 times and our profitability also improved significantly to Rs 172 crore."

"Our formulations business continues to grow at a higher rate mainly led by higher LMIC business, the revenue contribution from Formulations division has now grown to 36%. Custom Synthesis business has maintained its growth trajectory with strong contribution from all the divisional segments. Our Anti-Viral API portfolio has showcased a strong revenue growth of 19% on the back of higher volumes and offtake in EFV & TDF along with launch of DTG to Third Parties. The Other API business segment continues to post healthy growth with improved volumes."

"We entered the new Financial year with uncertanities of COVID-19, as an Organization we have been highly vigilant and responsive to the safety and well being of all our Employees. With our integrated strategy in place and continued investment in sustainable long term growth I am very optimistic on delivering superior performance on all parameters," he added.

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Revenue from Generic API segment showcased growth of 40%. The Anti-Viral segment showed growth of 19% and is expected to have growth for the full year. In the other API segment, contract manufacturing of Generic APIs showing robust growth of more than 2 times. The company filed 262 patent applications and 121 patent granted as on 30 June 2020.

Meanwhile, the board has fixed 30 September 2020 as the record date for 5-for-1 stock split.

The stock advanced 3.52% to Rs 790.90.

Laurus Labs researches, develops, and manufactures active pharmaceutical ingredients for therapeutic areas of anti-retrovirals and hepatitis C. The drug maker serves customers worldwide.

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First Published: Jul 30 2020 | 4:56 PM IST

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