The pharmaceutical company's consolidated net profit jumps 32.08% to Rs 203.04 crore on 50.16% surge in revenue from operations to Rs 1,544.82 in Q3 FY23 over Q3 FY22.
The growth in the revenue was mainly driven by strong contract development & manufacturing organization (CDMO) -Synthesis and Other APIs more than compensated for overall drag in ARVs revenues
Consolidated profit before tax was at Rs 277.85 crore in Q3 FY23, registering a growth of 36.54% from Rs 203.50 crore posted in the corresponding quarter last year.
EBITDA grew 39% year on year to Rs 404 crore in the quarter ended 31 December 2022. EBITDA margin reduced to 26.1% in Q3 FY23 as compared to 28.2% reported in the same period a year ago.
Laurus Labs' formulation business tumbled 33% to Rs 249 crore in Q3 FY23 from Rs 373 crore recorded in Q3 FY22. The decline in the segment was mainly due to lower demand and adverse price in the ARV formulations. Nevertheless, the formulation business recovered in Q3 from Q2 lows and is expected to further normalize, said the firm.
Income from API business jumped 49% to Rs 632 crore in Q3 FY23 as against Rs 424 crore registered in Q3FY22.
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The company's synthesis division delivered a strong growth of 210% YoY in Q3 FY23 to Rs 642 crore. The pharma firm said that the increased off-take continue to lead strong momentum including good base business growth. Pipeline looks very encouraging. Expansion in CDMO capability was on track to include new opportunities and new platform technologies.
The bio division recorded revenue of Rs 22 crore in Q3 FY23, lower by 12% on YoY basis. The company said that the unexpected downtime in Q3 led to production delays for CMO projects. Anticipate ramp-up of new capacities ahead. Demand outlook remains strong. New site planned to strengthen Laurus capabilities in AOF proteins and growth factors.
Dr. Satyanarayana Chava, founder and chief executive officer, said, Our Q3 and 9M of 2023 results reflects sustained business momentum across our key growth drivers, which is visible in our commercial execution within CDMO, and Non-ARVs generic portfolio. The growth is also supported by anticipated recovery in ARV FDF segment, which is likely to continue despite pricing challenges. Our recent success with the Global funds HIV procurement as 'Panel Supplier' demonstrates our committed to the cause of HIV. We also made additional advancements in our R&D initiatives and brought new capacities on line. We continue to execute on our strategy, prioritize investment into durable growth pillars, scaling up capacities and deliver profitable growth in long run.
V V Ravi Kumar, executive director & chief financial officer said, We believe our capital allocation framework including commitment towards diversification and strengthening non-ARV portfolio, building niche capabilities, and improving operational efficiency will continue to be in force in creating long term value.
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, oncology drugs, Cardiovascular, Gastro and Hepatitis C therapeutics. The company also develops and manufactures oral solid formulations, provide contract research and manufacturing services (CRAMS) to Global pharma companies.
Shares of Laurus Labs rose 0.67% to Rs 344.15 on the BSE.
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