Laurus Lab’s net profit declined 90 per cent to ₹25 crore in the first quarter ended June 30, 2023, compared to ₹251 crore in the corresponding quarter of the previous financial year.

Total revenue of the Hyderabad-based company declined 23 per cent at ₹1,182 crore (₹1,539 crore) due to the impact of “particularly strong’‘ Contract Development Manufacturing Organisation (CDMO) Synthesis revenues in base year, along with quarter-to-quarter variability in API and Finished Dosage Formulations (FDF) revenues.

“While our operating results this quarter were primarily impacted by lower sales, operational deleverage and elevated expenses, the underlying demand for key growth portfolio within Non-ARVs generics and CDMO progress remains strong and healthy,’‘ Satyanarayana Chava, Founder and Chief Executive Officer, Laurus Labs, said in a release. 

“ARV business has incrementally stabilised on an overall basis and therefore we remain optimistic in our H2 growth prospects as indicated earlier,’‘ he added. 

R&D driven strategy

During the quarter, 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 the emerging CGT technology platform., the CEO said. The company’s CDMO growth projects are on track with an animal health manufacturing block commissioned recently and a dedicated R&D centre coming online in late FY24. 

VV Ravi Kumar, Executive Director and Chief Financial Officer, said; “We are anticipating rebound from H2, with recovering revenue trends, positives from cost improvement programs and raw material price stabilisation.’‘

Furthre capex projects towards strengthening CDMO and Bio division of the company were advancing as per schedule and debt leverage position remained comfortable, he added.

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