Laurus Labs Q2 Results: Net Profit Down 46%, Misses Estimates

Laurus Labs Ltd.'s second-quarter profit declined, missing analysts' estimates.

Net profit of the Hyderabad-based pharma and biotech company slumped 46% year-on-year to Rs 20 crore in the quarter ended Sept. 30, 2024, according to its exchange filing. That compares with the Rs 33-crore consensus estimate of analysts tracked by Bloomberg.

• Revenue flat at Rs 1,224 crore (Bloomberg estimate: Rs 1,282 crore).

• Ebitda down 5% at Rs 178 crore vs Rs 188 crore (Bloomberg estimate: Rs 200 crore).

• Ebitda margin at 14.6% vs 15.3% (Bloomberg estimate: 15.6%).

• Net profit down 46% at Rs 20 crore vs Rs 37 crore (Bloomberg estimate: Rs 33 crore).

• Revenues flat as robust growth in CDMO division offset by lower offtake in ARV/Oncology API business.

• Gross Margins at 55.2%, increased by 270 bps year-on-year and 10 bps Q/Q due to product mix.

• Research and development spends reported at Rs 67 crore (5.5% of revenues).

• Decrease in Ebitda due to lower revenues.

• CDMO-Synthesis was up +33% on advancing clinical project.

• Enhancing platform advantage and prioritised resourcing to meet complex demand while RFPs momentum continued.

• Capacity expansion efforts remains on track.

Q2 impacted from lower demand in Oncology portfolio and ARV volumes dipped both year-on-year and quarter-on-quarter while Other APIs reported in-line.

• Delivered volume led quarter on quarter growth of 20%.

• Upcoming launches/recent US product approvals to further drive growth in coming quarters.

• Healthy underlying performance and increased customer pipeline building activity strengthening diversified CDMO customer base.

• New pilot scale added to support R2 optimisation/in-house projects.

Shares of the company were up 0.14%, compared to 0.18% fall in Nifty 50 at 3:15 p.m.