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Laurus Labs Q4 PAT gallops 170% to Rs 297 cr

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The drug maker's consolidated net profit soared 170% to Rs 297 crore on 68% surge in net sales to Rs 1,412 crore in Q4 FY21 over Q4 FY20.

On a consolidated basis, EBITDA grew 147% to Rs 477 crore in Q4 FY21 over Q4 FY20 while EBITDA margins stood at 34%. The board approved an interim dividend amounting to Re 0.80 per share.

The net profit soared 286% to Rs 984 crore on 70% surge in net sales to Rs 4,814 crore in the year ended March 2021 (FY21) over the year ended March 2020 (FY20). EBITDA grew 176% to Rs 1,573 crore in FY21 over FY20 while EBITDA margins stood at 33%.

The Reaseach and Development (R&D) expense stood at Rs 184 crore in FY21 which is 4% of its sales in FY21. The Generic FDF segment recorded a sale of Rs 430 crore, which is 30% of the contribution in Q4 and Rs 1,664 crore, 35% contribution in FY21.

In the synthesis segment, the total number of active projects in contract development and manufacturing organization (CDMO) division stood at 50 as on 31 March 2021. The commercial supplies are on-going for 4 products.

In the generic API segment, the company filed 292 patents and 150 patents granted as on 31 March 2021. It filed 61 DMFs (Drug Master Files). The segment recorded improved antiretroviral (ARV) Active Pharmaceutical Ingredients (APIs) sales.

Commenting on the Q4 result announcement, Dr Satyanarayana Chava, the founder & chief executive officer (CEO), said: "FY2021 was an extraordinary year for Laurus Labs and another year of strong progress for us. We delivered a strong performance in all divisions, and we are very confident in strengthening on it further in FY 2022 and beyond. I am extremely happy to share that we have registered a sales increase of Rs 1981 crores in a single financial year. With the acquisition of majority stake in Richcore Life Sciences Pvt Limited, which is renamed as Laurus Bio, Laurus Labs entered into high-growth biotechnology space. The acquisition gives us fermentation capabilities and helps us in diversification into newer areas, including recombinant products with a medium-to-long-term target of building vertically integrated biotech contract development and manufacturing organization. Our integrated strategy is delivering the outcomes and we are continuing to invest in the future to drive sustainable long-term growth."

"Our Formulations business led by LMIC tender business continues to deliver robust growth resulting in ~ 35% revenue contribution for the year. Along with the Tender business, we also see many new opportunities in developed markets of North America & Europe. APIs business has also done well with a revenue contribution of 54%, the growth led by higher volumes of all key first-line ARV APIs and Second-line ARV APIs sales picked up in FY2021. We are expanding our current capacities for key APIs to meet the increased demand for third-party API sales. We expect to file 8-10 ANDAs next year as we seem any long-term opportunities in the US generics space."

"Our Custom Synthesis business has contributed 11% revenues and demonstrated a robust growth led by commercial and late stage clinical supplies. We expect this business to achievescale in the coming years. We expect Laurus Bio will also start contributing positively in the coming quarters. I'm extremely proud of the agility and resilience our teams have shown in the face of this challenge since last year. With the improvement in margins and profitability in FY21 and given the variable factor of COVID-19, I remain highly optimistic about delivering superior performance," he added.

Laurus Labs is a leading research-driven pharmaceutical manufacturing company in India. It has grown to become one of the leading manufacturers of API for Anti-Retroviral (ARV), oncology, cardiovascular, anti-diabetics, anti-asthma, and gastroenterology.

Shares of Laurus Labs dropped 4.31% to Rs 454 on BSE. The stock hit an intraday low of Rs 450.65 and an intraday high of Rs 482.65 so far.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Thu, April 29 2021. 15:40 IST