Based on current visibility it anticipates to achieve 90% of earlier $1 billion guidance for this fiscal
Based on current visibility it anticipates to achieve 90% of earlier $1 billion guidance for this fiscal
Laurus Labs on Friday said it is likely to achieve only 90% of the earlier $1 billion revenue guidance this fiscal, an update that saw the drugmaker’s shares close 7.34% lower at ₹487.45 apiece on the BSE.
The price was a rebound as the shares, which opened at ₹529.90, touched ₹476 intraday, on the BSE. Triggering the fall was the update in which Laurus said based on current visibility it anticipated to achieve 90% of the $1 billion revenue target guidance. It had pegged the target at $1 to ₹72, a rate that since has moved up significantly in recent months.
Key factors behind the revenue moderation include potential impact from ARV formulation business due to prolonged higher channel inventory and ongoing pricing headwinds, timing of new product launches due to regulatory delays and continued macroeconomic uncertainty, the company said.
Overall, stable EBITDA margin of about 30% on a strong underlying revenue growth was expected for the fiscal, it said.
Q2 net up 14%
For the quarter ended September, Laurus reported consolidated net profit increased more than 14% to ₹233.39 crore from the ₹203.95 crore in the year-earlier period. Revenue from operations at ₹1,575.89 crore (₹1,203.48 crore) was almost 31% higher.
FDF revenue for the quarter declined by 70% to ₹149 crore and the growth was impacted by lower ARV business. Key drivers of the growth were the Synthesis and API business with the revenue increasing 365% to ₹720 crore and 29% to ₹680 crore respectively, the drugmaker said.
Founder and CEO Satyanarayana Chava said the company delivered healthy results in the first half of the fiscal. “It reflect efforts towards strengthening and diversifying the business by increasing revenues from CDMO and Non ARV API and Formulations. ARV FDF performance was very weak, impacted by lower volumes and adverse pricing but we expect good reversal in H2.”
The company has developed a novel delivery for paediatric HIV treatment and expect to file NDA shortly. “This should significantly enhance our market position,” he said.
Interim Dividend
The company has declared an interim dividend of ₹0.80 per equity share of ₹2 each. In another decision, Laurus said the Board has approved incorporation of a new wholly owned subsidiary for Specialty Chemicals.
