Laurus Labs Q1FY24 results: PAT sees massive drop of 90% YoY at Rs 25 cr

Lower sales, operational deleverage and elevated expenses were listed as reasons for subdued financial performance

Pharmaceutical and biotech company Laurus Labs saw a massive drop in profit after tax (PAT) of 90 per cent at Rs 25 crore in the first quarter of the financial year 2024 (Q1FY24). Compared to the same period last year, PAT was Rs 253 crore.

Compared to the previous quarter, PAT decreased by 76 per cent from Rs 105 crore.

Revenue at the company declined by 23 per cent YoY at Rs 1,182 crore and earnings before interest, taxes, depreciation, and ammortisation (Ebitda) fell by 63 per cent YoY at Rs 168 crore.

The company in its BSE filing stated that the reason for the subdued performance was due to lower sales, operational deleverage, and elevated expenses.

Total Income for Q1FY24 decreased by 23 per cent to Rs 1,182 crore YoY and 14 per cent QoQ.

Satyanarayana Chava, During the quarter, founder and chief executive officer, stated, "Laurus continued to advance its R&D driven commercial strategy by successfully signing its first multi-year commercial partnership in crop science and further deepening commitment into emerging CGT technology platform. Our CDMO growth projects are on track with the animal health manufacturing block commissioned recently and a dedicated R&D centre coming online in late FY24. We remain committed to ensuring greater business resilience and long term performance, with growing scientific capabilities remaining the source of our company’s energy and value creation."

Capital expenditures for the quarter were reported at Rs 203 crore, while operating profit was down 63 per cent at Rs 167 crore.