Laurus Labs Ltd – A Story of Patience

Reading Time: 4 minutes

Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

Laurus Labs Ltd – Q3FY21 Results Update

Laurus Labs performed extremely well in the 3rd quarter of FY21. The company did a robust growth in all three segments. Having a healthy order book for FY 21 & beyond in FDF CMO business with a strategic partner in the EU.

Consolidated revenue for the quarter increased by 76% driven by growth in all the divisions.

Laurus Labs Ltd - Division-wise Revenue

The company has been able to sustain its EBITDA margins, and profitability has also improved to Rs. 273 Crs. for the quarter.

The generic API division recorded a healthy growth of over 100% for the quarter, the growth was led by higher growth in ARV API business in turn led by higher volume of 1st line products.

The Formulation business of Laurus Labs Ltd showcased a growth of over 120% for the 9M period, led by higher LMIC business.

Also Read on FinMedium:  Bharti Airtel Ltd Stock Analysis with Q2FY21 Results

Custom Synthesis continues to maintain its growth trajectory with a healthy pipeline and with good visibility.

Capacity Expansion – To cater to future demands

Richcore will be renamed to Laurus Bio shortly. Laurus bio will able to cater to the demands of food & fermentation and synergies are exciting for the same.

With a vision of creating long-term sustainable growth, the company continues to undertake a major Capex program across all divisions.

Total Revenue from Operations came in at ₹ 1,288 CRS, showcasing strong growth of 76% for the quarter and ₹ 3,402 CRS for 9M FY21 growing by 71%.

EBITDA Margins remained steady at 34% owing to better operating leverage and product mix.

Also Read: Advanced Enzyme Technologies

PAT of Laurus Labs Ltd stood at ₹ 273 CRS for the quarter, showcasing a robust growth of 274%. ROCE on an annualized basis has improved to 40%.

The company continues to have a healthy cash position with ~ 600 CRS of headroom available in the form of unutilized bank limits.

The company continues to undertake larger CAPEX for all the divisions and initiate new manufacturing units on a greenfield basis.

Debt Scenario

3 Years Return Ratio of Laurus Labs

Return Ratios of Laurus Labs Ltd

Business Highlights

Generic FDF

  • Revenue growth of 47% for the quarter (Y-o-Y) and 121% for 9M (Y-o-Y). Generic FDF business maintains healthy growth momentum for the quarter.
  • Commenced marketing of in-licensed products in the US by leveraging the front end.
  • Contract manufacturing revenues from the EU region has a strong order book for FY21 and beyond.
  • 2 product validations completed for formulation apart from filling of 26 ANDAs & NDAs 9 products have received Final Approvals, and 8 products have received Tentative Approvals. Doubling their FDF capacity by FY22.
Also Read on FinMedium:  Havells Shares Valuation and Intrinsic Value of Shares- DCF Excel Model

Synthesis & Ingredients

  • Revenue showcased the growth of 63% for the quarter (Y-o-Y) and 45% for 9M (Y-o-Y). The total number of Active Projects in the CDMO division stood at 49 as of 9M FY21.
  • State-of-the-art cGMP facilities to manufacture NCEs and Intermediates.
  • Laurus Labs Ltd is working with Large Global Innovator Pharmaceutical Companies, mid and small Biotech Companies.

Generic API

  • Revenue from the Generic API segment showcased the growth of 103% for the quarter (Yo-Y) and 52% for 9M (Y-o-Y).
  • The Anti-Viral segment showed robust growth of 165% for the quarter and 58% for 9M (Y-o-Y) and is expected to have good growth for the full year. Filed 282 patent applications and 141 patents granted as of Dec 31, 2020.

Laurus Bio Pvt. Ltd. – Briefing

  • Laurus Bio has 2 manufacturing facilities. The first one has a fermentation capacity of 10,750 Lts while the second one has 180,000 Lts (will be available by March 2021).
  • Laurus Bio/Richcore is an emerging biotech company.  Fast Growing Research Driven BioManufacturing Company Recombinant products – animal origin free products for safer, viral free biomanufacturing.
  • Precision Fermentation capabilities -scale-up expertise and large scale manufacturing capabilities.
  • Strategic global partnerships for the commercialization of products.
Also Read on FinMedium:  My notes from various annual reports for 2020 – Neuland Laboratories Limited – Factsbeyondnumbers

Watch: Laurus Labs Ltd Stellar Growth in Q3

15 Years of Patience, Diligence & Perseverance

Laurus Labs Ltd

Laurus Labs Ltd

* Consolidated numbers based on certain assumptions 

** FY 21 numbers are as of 31st Dec 2020

Sources: Laurus Labs Ltd Investor Presentation Q3FY21 & Press Release

Source link

Written By: Shuchi Nahar | Subscribe to Shuchi’s Blog | Linkedin Profile

Cover Image: Business Standard

Every Wednesday and Saturday, we send Info-Graphic and FinMedium Weekly Digest newsletters to our 25000+ Subscribers.

Join Them Now!


Shuchi Nahar

Shuchi Nahar

Shuchi is NISM Certified Equity Research Analyst, CFA - Level 1, a student of Law and Finance, and an aspiring CS.
Please Share :)