Laurus Labs Ltd reports surge in consolidated PAT to Rs. 242.27 crore

Laurus Labs Ltd has reported financial results for the period ended September 30, 2020.

Financial Results (Q2 FY20-21) - QoQ Comparison

The company has reported total income of Rs.1143.96 crores during the period ended September 30, 2020 as compared to Rs.981.41 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.242.27 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.171.78 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.4.50 for the period ended September 30, 2020 as compared to Rs.3.21 for the period ended June 30, 2020.

Financials	Q2 FY20-21	Q1 FY20-21	% Change
Total Income	₹ 1143.96 crs	₹ 981.41 crs	16.56%
Net Profit	₹ 242.27 crs	₹ 171.78 crs	41.04%
EPS	₹ 4.50	₹ 3.21	40.19%

Financial Results (Q2 FY20-21) - YoY Comparison

The company has reported total income of Rs.1143.96 crores during the period ended September 30, 2020 as compared to Rs.713.78 crores during the period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.242.27 crores for the period ended September 30, 2020 as against net profit / (loss) of Rs.56.55 crores for the period ended September 30, 2019.

The company has reported EPS of Rs.4.50 for the period ended September 30, 2020 as compared to Rs.1.06 for the period ended September 30, 2019.

Financials	Q2 FY20-21	Q2 FY19-20	% Change
Total Income	₹ 1143.96 crs	₹ 713.78 crs	60.27%
Net Profit	₹ 242.27 crs	₹ 56.55 crs	328.42%
EPS	₹ 4.50	₹ 1.06	324.53%

Financial Results (6 months ended FY 20-21) - YoY Comparison

The company has reported total income of Rs.2125.37 crores during the 6 months period ended September 30, 2020 as compared to Rs.1268.85 crores during the 6 months period ended September 30, 2019.

The company has posted net profit / (loss) of Rs.414.05 crores for the 6 months period ended September 30, 2020 as against net profit / (loss) of Rs.71.65 crores for the 6 months period ended September 30, 2019.

The company has reported EPS of Rs.7.71 for the 6 months period ended September 30, 2020 as compared to Rs.1.34 for the 6 months period ended September 30, 2019.

Financials	Half-Year Ended FY20-21	Half-Year Ended FY19-20	% Change
Total Income	₹ 2125.37 crs	₹ 1268.85 crs	67.5%
Net Profit	₹ 414.05 crs	₹ 71.65 crs	477.88%
EPS	₹ 7.71	₹1.34	475.37%

Commenting on the results announcement, Dr. Satyanarayana Chava - Founder & CEO said; "Our Consolidated revenue for the quarter increased by 60% driven by growth in all the divisions. Our EBITDA margins continue to improve with better operating leverage, and our profitability has also improved substantially to Rs. 242 crs for the quarter.

Our Formulations business showcased a growth of over 180% for the quarter, mainly led by higher LMIC business and new launches in various markets, the division now contributed ~40% to overall revenues. The generic API division also recorded a healthy growth of 22% for the quarter, led by higher growth in ARV API business owing to higher volumes. Custom Synthesis continues to maintain its growth trajectory with a healthy pipeline and with good visibility.

With a clear roadmap, adequate, and responsible capital allocation for sustainable long-term vision, I am very optimistic about growth for the coming years."

Commenting on the results announcement, V V Ravi Kumar, ED & Chief Financial Officer said; "Total Revenue from Operations came in at ₹ 1,139 crs, showcasing strong growth of 60% for the quarter. We also saw a further improvement in Gross Margins, led by better product mix. Our EBITDA margins showed improvement at 33% on the back of higher Gross Margins and improved Operating Leverage. Our PAT stood at ₹242 crs for the quarter, showcasing a robust growth of 325%.

With better operational performance, our ROCE on an annualised basis has improved to 37.5%. With improved demand visibility and strong profitability and debt situation, we continue to undertake larger green-field and brown-field CAPEX for all the divisions and initiate new manufacturing units on greenfield basis. We are confident that the new capex will have a shorter payback period."

Shares of Laurus Labs Ltd was last trading in BSE at Rs.322.65 as compared to the previous close of Rs. 323.5. The total number of shares traded during the day was 125186 in over 3378 trades.

The stock hit an intraday high of Rs. 329.65 and intraday low of 320.05. The net turnover during the day was Rs. 40676736.

Source : Equity Bulls

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