Laurus Labs (LAURUSLABS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenues reached ₹1,195 Cr, up 1% year-over-year, with API (notably oncology and ARV) growth offset by subdued CDMO and FDF performance.

• EBITDA stood at ₹171 Cr (14.3% margin), impacted by lower asset utilization and upfront costs in growth projects.

• Gross margin improved to 55.1%, supported by product mix, cost savings, and process improvements.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with statutory auditor review and unmodified conclusion.

• Appointment of Mr. Ramesh Subrahmanian as an Additional Independent Director for a five-year term, subject to shareholder approval.

Financial highlights

• Q1 FY25 revenue grew 1% year-over-year to ₹1,195 Cr; API growth (+11%) offset by CDMO (-14%) and FDF (-4%).

• Gross margin: 55.1%, up 450 bps year-over-year and 530 bps sequentially.

• EBITDA: ₹171 Cr, up 2% year-over-year, down 34% sequentially; margin at 14.3%.

• Net profit after tax for Q1 FY25 was ₹12.21 crore (consolidated), down from ₹28.40 crore in Q1 FY24.

• Net debt stood at ₹2,633 crore; CapEx investment of ₹125 crore in Q1.

Outlook and guidance

• FY25 growth to be driven by medium/long-term contracts, late-phase NCE projects, and new assets coming online.

• Performance expected to improve in H2 FY25, with commercial deliveries for key late-phase NCE projects in Q4.

• Confident in maintaining 20% EBITDA margin guidance for FY25.

• FY25 projected as a strong year, with FY26 expected to be even better as new assets (animal health, crop protection) come online.

• ARV franchise revenue expected to remain stable at ₹2,400–2,500 crore annually, but as a percentage of total revenue, ARV contribution will decline as other segments grow.