Q1 2025 Laurus Labs Ltd Earnings Call Transcript
Key Points
- Laurus Labs Ltd (BOM:540222) maintained a strong gross margin above 50%, demonstrating resilience despite pricing pressures in generic APIs.
- The company reported a 10% growth in oncology APIs, with Q1 sales reaching INR120 crore.
- Laurus Labs Ltd (BOM:540222) has invested significantly in expanding its development and manufacturing capabilities, which is expected to support long-term growth.
- The company is engaged in over 70 active CDMO projects, indicating a robust pipeline and strong customer confidence.
- Laurus Labs Ltd (BOM:540222) successfully passed 32 quality audits, including US FDA inspections, without any critical findings, showcasing strong compliance and quality standards.
- The company's EBITDA margin remained subdued at 14% due to lower asset utilization and dilution from investments in growth projects.
- Revenue growth was flattish at 1%, with total income from operations at INR1,195 crore, indicating limited top-line expansion.
- Sequential sales in the cardiovascular, diabetes, and asthma API segments declined by 24%, primarily due to timing issues in CMO contract deliveries.
- The generic formulation space saw a 4% decrease in overall revenues year-on-year, impacted by global agencies' buying patterns in ARV formulations.
- Net debt stood at INR2,636 crore, reflecting a significant leverage that could pose financial risks if not managed effectively.
Ladies and gentlemen, good day, and welcome to Laurus Labs Limited Q1 FY25 earnings conference call hosted by Antique Stock Broking. (Operator instructions) Please note that this conference is being recorded. I'll hand the conference over to Mr. Monish Shah from Antique Stock Broking. Thank you, and over to you sir.
Thank you, Seema. Good evening, everyone, and welcome to Laurus Labs Q1 FY25 earnings conference call. Today we have with us Dr. Satyanarayana Chava, Founder and CEO, and Mr. VV Ravi Kumar, Executive Director and CFO and Vivek from the IR team. On behalf of Antique Stockbroking, I thank Laurus management for giving us the opportunity to host this call.
I would now like to hand the call over to Dr. Satya for his opening remarks. Thank you and over to you, sir.
Thank you, Monish, for your introduction. Thank you all for joining us on our Q1 FY25 results
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