Laurus Labs plunges 7% post Q2 results; Here’s why

Shares of Laurus Labs fell 7 per cent in Friday’s trade after the drug maker company reported less-than-expected September quarter results.
 
The scrip fell 7.34 per cent to close the day at Rs 487.45 on BSE, taking its year-to-date fall to 9.79 per cent. 
 
Earlier in the day,  the pharma company reported a 15 per cent year-on-year (YoY) rise in profit after tax (PAT) at Rs 233 crore in the September quarter. 
 
Revenues for the quarter came in at Rs 1,576 crore, up 31 per cent. 
 
Ebitda rose 29 per cent YoY to Rs 449 crore while Ebitda margin came in at 28.5 per cent. PAT margins stood at 15 per cent, the company said in a BSE filing. 
 
Executive Director and CFO VV Ravi Kumar said, “In Q2FY23, Laurus Labs continued its strong performance with 31 per cent revenue growth to Rs 1,576 crore, driven by accelerated demand in our CDMO-Synthesis business and off-take in API business.”
 
CDMO stands  for contract development and manufacturing organization.
 
Kumar said, “Revenues are up 26 per cent to R s3,115 crore and Ebitda grew by 21 per cent. Our ROCE on annualised basis stood healthy nearly 28 per cent with comfortable balance sheet position. “
 
In the first half of FY23, Laurus Lab invested a total of Rs 416 crore. The company said it is on track to execute its future capex as scheduled.
 
“EBitda came at Rs 449 crore with Ebitda margins of 29 per cent as favourable mix partially mitigating pricing impact in ARV business and negative operating leverage. During H1 FY23, our overall operational performance was healthy;” Kumar added.

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