Laurus Labs Q4 PAT spurts 155% Y-o-Y; declares 1:5 stock split

Laurus Labs' consolidated net profit surged 155.09% to Rs 110.15 crore on a 32.11% jump in net sales to Rs 839.14 crore in Q4 March 2020 over Q4 March 2019.

On a consolidated basis, profit before tax soared 141.09% to Rs 126.73 crore in Q4 March 2020 as against Rs 52.56 crore in Q4 March 2019. Total tax expenses jumped 76.66% to Rs 16.58 crore in Q4 March 2020 as compared to Rs 9.39 crore in Q4 March 2019.

The earnings before interest, tax, depreciation and ammortization (EBITDA) for Q4 March 2020 jumped 71% to Rs 193.40 crore over Q4 March 2019. EBITDA margin for the quarter stood at 23%. Hydroxychloroquine was launched in March 2020 in the US by its partner.

Meanwhile, the company's board recommended for a 1:5 stock split (splitting each share into five). The result was declared at the fag end of trading hours on Thursday, 30 April 2020.

Commenting on the Q4 performance, Dr Satyanarayana Chava, the founder and CEO of Laurus Labs, has stated that, I am very happy to share that we have closed FY20 on a strong footing, recording our Highest ever Revenue, EBITDA and Profit numbers. Our Formulations business led by LMIC tender business continues to deliver robust growth resulting in ~30% revenue contribution for the year. Along with the Tender business we are also seeing many new opportunities in developed markets of North America & Europe. We continue to file 8-10 ANDAs a year as we see many long-term opportunities in US generics space. Our Custom Synthesis business has maintained its growth trajectory with higher volumes from the CDMO business."

"With higher volumes and new product introduction, our Other API business segment has posted healthy growth, we do expect this growth rate to continue and improve in the coming quarters. Our Anti Viral API revenues grew on a sequential basis. We expect this business to achieve stable revenues in FY21 and may grow albeit at a lower rate. Our integrated strategy is delivering outcomes and we are investing in the future to drive sustainable long-term growth. With the improvement in margins and profitability in FY20 and given the variable factor of COVID19, I remain highly optimistic about delivering superior performance on all parameters, he added.

Speaking on the result announcement, V V Ravi Kumar, the ED and chief financial officer of Laurus Labs, has said that, Our Total Revenues from Operations came in at INR 28,317 mn for FY20. Our Gross Margins continue to show improvement on the back of better product mix from FDF & Custom Synthesis businesses. With the improvement in our Asset turns for all our major units, our EBITDA margins showed a meaningful improvement at 20 % for FY20. All our greenfield Units have turned cash positive this year and reported a pre-tax ROCE of 14 %. With attractive business opportunities and a healthy order book for FY21, we continue to invest in our FDF and API Infrastructure. At the same time, we remain confident of achieving improved return ratios.

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

Shares of Laurus Labs declined 3.23% to Rs 495.80 on BSE. The stock hovered in the range of Rs 482.75 to Rs 525 so far.

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