Laurus Labs declines after recording 44% YoY fall in Q3 PAT

Laurus Labs fell 2.36% to Rs 463.45 after the company's consolidated net profit declined 44% to Rs 154 crore in Q3 FY22 from Rs 273 crore in Q3 FY21.

Revenues contracted by 20% YoY to Rs 1,029 crore during the quarter, due to lower demand of ARV APIs and formulations due to transient inventory correction.

EBITDA in Q3 FY22 stood at Rs 290 crore, down by 33% from Rs 433 crore in Q3 FY21. EBITDA margin was 28.2% in Q3 FY22 as against 33.6% in Q3 FY21.

Dr. Satyanarayana Chava, founder and chief executive officer, said: Our 9MFY22 results reflects operational resilience overall with better mix and sustained profitability despite of lower revenue from ARV APIs and formulations. Our Q3 results impacted by lower sales of ARV APIs and formulations due to stocking at channel partners and we expect improvement from Q4.

However, strong momentum in our CDMO business continued this quarter with over 60% growth and also seen healthy rebound in API business (ex-ARV) with activity levels picking up. We continue to sharpen our execution as we focus on positioning our businesses for sustainable long term growth.

Laurus Labs is a fully integrated pharmaceutical and biotechnology company, with a leadership position in generic Active Pharmaceutical Ingredients (APIs) and a major focus on anti-retroviral, Hepatitis C, and oncology drugs.

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