Laurus Labs Conducted their Q2 and H1 FY23 conference Call on 21st October.
Here are the key takeaways…
Here are the key takeaways…
Business overview
- Company has delivered flattish results during the period.
- During the half timeframe, FDF segment have declined by approximately 50% due to weak global agencies but expect a strong recovery from next quarter onwards.
- Company has delivered flattish results during the period.
- During the half timeframe, FDF segment have declined by approximately 50% due to weak global agencies but expect a strong recovery from next quarter onwards.
- FDF revenues were mainly dragged by lower ARV business, but strong recovery is expected with higher generic volumes.
- Their API business recovered 17% aided by new contracts.
- Though Oncology declined 30%, improvements are expected in 2H
- The CDMO space, delivered a solid growth of 270% through new product execution and favourable contacting trends.
- Though Oncology declined 30%, improvements are expected in 2H
- The CDMO space, delivered a solid growth of 270% through new product execution and favourable contacting trends.
- Above 50 active projects at different stages are present in synthesis phase. And they have became suppliers for 4 commercial projects.
- New CEO and COO will take over from Mr. R. Subramani who have stepped down from executive role due to personal reasons.
- New CEO and COO will take over from Mr. R. Subramani who have stepped down from executive role due to personal reasons.
- Under Bios segment, sales jumped by 43% and expect to deliver stronger with company heavy investment in this space.
- Scale,Cost and functionality have been the key drivers for this differential performance.
- Leading to better focus towards product offering and relationship.
- Scale,Cost and functionality have been the key drivers for this differential performance.
- Leading to better focus towards product offering and relationship.
Financials
- For the first half period, the revenue stood around 3100 crore levels Compared to 2500 levels previous year.
- The Companies EBITDA levels stood around 900 crores up by 21%.
- Though there is a decline of 1% in EBITDA margins.
- For the first half period, the revenue stood around 3100 crore levels Compared to 2500 levels previous year.
- The Companies EBITDA levels stood around 900 crores up by 21%.
- Though there is a decline of 1% in EBITDA margins.
- The net profit stood around 480 crores, due to heavy taxation for the timeline.
- The company has a negative cash flow on operating level due to high inventory levels and supply chain challenges.
- The company has a negative cash flow on operating level due to high inventory levels and supply chain challenges.
Capex
- For the 1 half timeframe there has been a decline in the RnD spending as well.
- Nearly 100 crores are been invested for the quarter and with the progress in Capex ,being inline with forecast they expect to deliver in the timeline mentioned.
- For the 1 half timeframe there has been a decline in the RnD spending as well.
- Nearly 100 crores are been invested for the quarter and with the progress in Capex ,being inline with forecast they expect to deliver in the timeline mentioned.
- Till now 400 crore Worth of Capex has been incurred.
- Under FDF, unit-2 brownfield capacity was brought online last quarter.
- Under DM filings 3 products were filed in developed markets and they have commissioned R&D lab for sterile injectables.
- Under FDF, unit-2 brownfield capacity was brought online last quarter.
- Under DM filings 3 products were filed in developed markets and they have commissioned R&D lab for sterile injectables.
- In CDMO space, with strong and wider customer base they have initiated plans for new R&D center and 3 manufacturing units.
- All above expected to be completed before 2025.
- All above expected to be completed before 2025.
- Till now company has gained 21bn dollars worth of approved pipeline 65% to be non ARV and about 44 billion $ worth is under development in the ratio of 60/40 wherein 60% is for Non ARV.
- They tend to prepare strong pipeline in each segment area to gain market opportunities like.
- Under FDF, they expect to start monetisation in diabetic and CV portfolios.
- Under API, scale up is done in anti-diabetic,CV and PPI.
- Under FDF, they expect to start monetisation in diabetic and CV portfolios.
- Under API, scale up is done in anti-diabetic,CV and PPI.
- Synthesis, the company is trying to strengthen its presence in nutraceuticals and Cosmeceuticals area.
- And Finally, For bios scale up is done in alternate food proteins and goal to expand the biological CDMO at scale in long term.
- And Finally, For bios scale up is done in alternate food proteins and goal to expand the biological CDMO at scale in long term.
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