Equity Analysis

Corporate Results - Detailed News
Laurus Labs
27-Jan-22   21:13 Hrs IST

For the quarter ending Dec 2021, consolidated Net sales (including other operating income) of Laurus Labs has declined 20.15% to Rs 1028.76 crore compared to quarter ended Dec 2020.

Operating profit margin has declined from 33.09% to 27.73%, leading to 33.08% decline in operating profit to Rs 285.29 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 47.76% to 39.86%.   Purchase of finished goods cost rose from 1.56% to 3.14%.   Employee cost increased from 7.23% to 11.50%.   Other expenses rose from 12.82% to 18.61%.   

Other income fell 23.09% to Rs 5.33 crore.  PBIDT fell 32.92% to Rs 290.62 crore.  Provision for interest rose 32.53% to Rs 23.1 crore.  

PBDT fell 35.66% to Rs 267.52 crore.  Provision for depreciation rose 23.97% to Rs 64.02 crore.  

Profit before tax down 44.12% to Rs 203.50 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 48.53 crore, compared to Rs 91.31 crore.  Effective tax rate was 23.85% compared to 25.07%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 43.66% to Rs 153.73 crore.  

Promoters' stake was 27.27% as of 31 December 2021 ,compared to 28.76% as of 31 December 2020 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Laurus Labs has increased 3.21% to Rs 3510.74 crore.  

Operating profit margin has declined from 31.71% to 29.22%, leading to 4.89% decline in operating profit to Rs 1,025.72 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.19% to 45.54%.   Purchase of finished goods cost rose from 1.64% to 2.33%.   Employee cost increased from 8.93% to 9.70%.   Other expenses rose from 13.17% to 15.70%.   

Other income fell 26.80% to Rs 14.01 crore.  PBIDT fell 5.28% to Rs 1039.73 crore.  Provision for interest rose 55.33% to Rs 71.84 crore.  

PBDT fell 7.94% to Rs 967.89 crore.  Provision for depreciation rose 22.66% to Rs 185.75 crore.  

Profit before tax down 13.09% to Rs 782.14 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 181.61 crore, compared to Rs 213.04 crore.  Effective tax rate was 23.22% compared to 23.67%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 13.08% to Rs 597.02 crore.  

Promoters' stake was 27.27% as of 31 December 2021 ,compared to 28.76% as of 31 December 2020 .  

Full year results analysis.

Net sales (including other operating income) of Laurus Labs has increased 69.99% to Rs 4813.51 crore.  

Operating profit margin has jumped from 19.94% to 32.22%, leading to 174.68% rise in operating profit to Rs 1,550.68 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 52.94% to 46.16%.   Purchase of finished goods cost rose from 0.52% to 1.88%.   Employee cost decreased from 11.32% to 8.49%.   Other expenses fell from 16.70% to 13.12%.   

Other income rose 299.66% to Rs 23.66 crore.  PBIDT rose 175.97% to Rs 1574.34 crore.  Provision for interest fell 23.92% to Rs 68.16 crore.  Loan funds rose to Rs 1,481.69 crore as of 31 March 2021 from Rs 978.08 crore as of 31 March 2020.  Inventories rose to Rs 1,575.45 crore as of 31 March 2021 from Rs 905.22 crore as of 31 March 2020.  Sundry debtors were higher at Rs 1,306.06 crore as of 31 March 2021 compared to Rs 791.42 crore as of 31 March 2020.  Cash and bank balance rose to Rs 48.46 crore as of 31 March 2021 from Rs 1.74 crore as of 31 March 2020.  Investments stood at Rs 3.41 crore as of 31 March 2021 to Rs 3.41 crore as of 31 March 2020.  

PBDT rose 213.21% to Rs 1506.18 crore.  Provision for depreciation rose 9.50% to Rs 205.07 crore.  Fixed assets increased to Rs 2,286.49 crore as of 31 March 2021 from Rs 1,774.03 crore as of 31 March 2020.  Intangible assets increased from Rs 19.49 crore to Rs 246.30 crore.  

Profit before tax grew 343.14% to Rs 1,301.11 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 317.29 crore, compared to Rs 38.34 crore.  Effective tax rate was 24.39% compared to 13.06%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 285.31% to Rs 983.58 crore.  

Equity capital increased from Rs 106.91 crore as of 31 March 2020 to Rs 107.32 crore as of 31 March 2021.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 27.45% as of 31 March 2021 ,compared to 32.04% as of 31 March 2020 .  Promoters pledged stake was 1.15% as of 31 March 2021 ,compared to 45.22% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 733.00 crore for year ended March 2021 from Rs 347.42 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 688.77 crore, compared to Rs 222.19 crore during the year ended March 2020.  

Other Highlights

For 9M FY22, R&D spent was Rs 148 crore which is 4% of total sales in 9M FY22.

In Q3 FY22, Generic FDF segment wend down 13%, API went down by 42%, Synthesis went up 63% compared to Q3 FY21.

For 9M FY22, Generic FDF segment wend up 13%, API went down by 18%, Synthesis went up 62% compared to 9M FY21.

Brownfield capacity expansion at Unit 2 (to add 4bn units) is on track and expected to get commercialized by Q1 FY23.

One product dossier was filed in Developed markets in 3Q taking total filings to 8 products for 9MFY22.

Key Drivers of growth going forward will be Sustained new client addition and increased business from existing customers.

Management Commentary: Founder and Chief Executive Officer Dr. Satyanarayana Chava stated Our 9MFY22 results reflects operational resilience overall with better mix and sustained profitability despite of lower revenue from ARV APIs and formulations. Our Q3 results impacted by lower sales of ARV APIs and formulations due to stocking at channel partners and we expect improvement from Q4. However, Strong momentum in our CDMO business continued this quarter with over 60% growth and also seen healthy rebound in API business (ex-ARV) with activity levels picking up. We continue to sharpen our execution as we focus on positioning our businesses for sustainable long term growth.

V V Ravi Kumar, ED & Chief Financial Officer said; Laurus Labs reported 9MFY22, our Revenues have grown 3% to Rs 3,511 crs, driven by Strong CDMO business, steady FDF and likely rebound in Other APIs. EBITDA came at Rs 1,038 crs with EBITDA margins at 30% as better mix compensated for negative operating leverage. Q3 Revenues of Rs 1,029 crs, fell 20% YoY, impacted by continued stocking concern in ARV business. Despite a tough environment we have demonstrated healthy Gross Margins expansion due to better mix. EBITDA has declined by 33 % to Rs 290 crs while our EBITDA margins were largely consistent at 28%.

Laurus Labs: Consolidated Results

 

Quarter endedYear to DateYear ended
Particulars202112202012Var.(%)202112202012Var.(%)202103202003Var.(%)
Net Sales (including other operating income)1,028.761,288.42-20.153,510.743,401.583.214,813.512,831.7269.99
OPM (%)27.7333.09-536 bps29.2231.71-249 bps32.2219.941,228 bps
OP285.29426.3-33.081,025.721,078.49-4.891,550.68564.55174.68
Other Inc.5.336.93-23.0914.0119.14-26.823.665.92299.66
PBIDT290.62433.23-32.921,039.731,097.63-5.281,574.34570.47175.97
Interest23.117.4332.5371.8446.2555.3368.1689.59-23.92
PBDT267.52415.8-35.66967.891,051.38-7.941,506.18480.88213.21
Depreciation64.0251.6423.97185.75151.4422.66205.07187.279.5
PBT203.5364.16-44.12782.14899.94-13.091301.11293.61343.14
Share of Profit/(Loss) from Associates-0.020--0.020-00-
PBT before EO203.48364.16-44.12782.12899.94-13.091301.11293.61343.14
EO Income00-00-00-
PBT after EO203.48364.16-44.12782.12899.94-13.091301.11293.61343.14
Taxation48.5391.31-46.85181.61213.04-14.75317.2938.34727.57
PAT154.95272.85-43.21600.51686.9-12.58983.82255.27285.4
Minority Interest (MI)1.220-3.490-0.240-
Net profit153.73272.85-43.66597.02686.9-13.08983.58255.27285.31
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations153.73272.85-43.66597.02686.9-13.08983.58255.27285.31
EPS (Rs)*2.865.08-43.6611.1112.78-13.0818.34.75285.31
* EPS is on current equity of Rs 107.47 crore, Face value of Rs 2, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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