{"id":155151,"date":"2023-10-20T11:50:40","date_gmt":"2023-10-20T15:50:40","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155151"},"modified":"2023-10-20T11:50:42","modified_gmt":"2023-10-20T15:50:42","slug":"laurus-labs-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/laurus-labs-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Laurus Labs Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Laurus Labs Limited (LAURUSLABS) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Q2 FY24 Results<\/strong>\n<ul>\n<li>Revenue declined 22% year-on-year to INR1,224 crores..<\/li>\n<li>EBITDA was INR188 crores with 15.4% margin.<\/li>\n<li>Quarter-on-quarter growth rebounding in API and CDMO business.<\/li>\n<li>Healthy order book and partnerships for better H2 performance.<\/li>\n<li>New facilities to boost fermentation and biocatalysis expertise<\/li>\n<\/ul>\n<\/li>\n<li><strong>Updates On Formulation Business<\/strong>\n<ul>\n<li>Revenues of INR333 crores, up 120% year-on-year due to low base.<\/li>\n<li>Sequential growth of 16% driven by recovery in ARV business.<\/li>\n<li>Market share growth in developed markets like US, Canada, EU.<\/li>\n<li>Added capacity reaching optimal utilization.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Progress In Generic APIs<\/strong>\n<ul>\n<li>Revenue declined 8% year-on-year but grew 5% quarter-on-quarter.<\/li>\n<li>Growth moderated due to cyclicality in ordering patterns.<\/li>\n<li>Oncology API sales grew over 100% year-on-year.<\/li>\n<li>Augmenting capacity for oncology APIs to meet demand.<\/li>\n<li>Oncology API business grew well driven by market share gains from competitor issues.<\/li>\n<li>Strong oncology order book for H2; expect growth to sustain given orders beyond Q4.<\/li>\n<li>Overall API growth slower due to capacity additions awaiting commercialization.<\/li>\n<\/ul>\n<\/li>\n<li><strong>CDMO Business Updates<\/strong>\n<ul>\n<li>Revenues declined 70% year-on-year due to large prior year projects.<\/li>\n<li>Baseline business healthy with growing project pipeline.<\/li>\n<li>Progress on new facilities for future growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Strong Growth Across All Business Segments<\/strong>\n<ul>\n<li>Optimistic about better margins in H2 vs H1.<\/li>\n<li>Growth to be driven by increased sales in API, oncology, formulations and CDMO.<\/li>\n<li>No major new commercial sales expected in CDMO in H2, only Phase 2 and 3 supplies.<\/li>\n<li>Animal health capacity in CDMO started commercial supplies from Oct 2022.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Synthesis Business Outlook<\/strong>\n<ul>\n<li>Expects synthesis business to improve next year as projects move into late clinical and commercial stage.<\/li>\n<li>This year faced some deferments leading to no sequential growth.<\/li>\n<li>New approvals, deals and growing oncology and non-oncology API sales to drive growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Diversification Beyond Pharmaceuticals<\/strong>\n<ul>\n<li>Entering animal health with contract for multiple products.<\/li>\n<li>Diversification makes CDMO business well-rounded compared to competitors.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin outlook<\/strong>\n<ul>\n<li>Aiming to get closer to 30% EBITDA margins in future.<\/li>\n<li>Growth in higher margin CDMO business to help improve margins.<\/li>\n<li>Uncertain on which year 30% will be achieved.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Capex and Utilization<\/strong>\n<ul>\n<li>Investing significantly in new facilities and capacity expansions across businesses.<\/li>\n<li>New synthesis facilities to start contributing from mid FY25.<\/li>\n<li>Asset turns between 1-2x expected for new CDMO sites.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Changing Business Mix<\/strong>\n<ul>\n<li>Growth to come from non-ARV APIs and formulations.<\/li>\n<li>Animal health and crop sciences to start scaling up soon.<\/li>\n<li>No major incremental contracts in human health in next 18 months.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Laurus Labs Limited (LAURUSLABS) Q2 FY24 Earnings Concall Q2 FY24 Results Revenue declined 22% year-on-year to INR1,224 crores.. EBITDA was INR188 crores with 15.4% margin. Quarter-on-quarter growth rebounding in API and CDMO business. Healthy order book and partnerships for better H2 performance. New facilities to boost fermentation and biocatalysis expertise Updates On [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,392,5747],"tags":[898,3187,10169,10162],"class_list":["post-155151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-earnings","category-healthcare-stocks","tag-biotech","tag-biotechnology","tag-earnings","tag-pharmaceutical"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":157996,"url":"https:\/\/alphastreet.com\/india\/laurus-labs-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155151,"position":0},"title":"Laurus Labs Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 25, 2024","format":false,"excerpt":"Key highlights from Laurus Labs Limited (LAURUSLABS) Q3 FY24 Earnings Concall Business Performance Gross margins remained resilient at over 52% for several quarters despite slower Q3 performance. EBITDA margins negatively impacted in Q3 due to higher expenses on growth projects and new initiatives. Q3 revenues increased 6% excluding large prior\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":144359,"url":"https:\/\/alphastreet.com\/india\/laurus-labs-limited-q4fy23-earnings\/","url_meta":{"origin":155151,"position":1},"title":"Laurus Labs Limited Q4FY23 Earnings","author":"Karan_Singh","date":"April 27, 2023","format":false,"excerpt":"To meet the demands of the international pharmaceutical industry, Laurus Labs primarily provides a comprehensive and integrated portfolio of Active Pharmaceutical Ingredients (API), including intermediates, Generic Finished Dosage Forms (FDF), and Contract Research services. Financial Results: Laurus Labs Ltd. reported Total Income for Q4FY23 of \u20b9 1,382.61 Crores down from\u2026","rel":"","context":"In &quot;Earnings&quot;","block_context":{"text":"Earnings","link":"https:\/\/alphastreet.com\/india\/category\/earnings\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/science-lab_evotec_-Macrovector.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/science-lab_evotec_-Macrovector.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/science-lab_evotec_-Macrovector.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/science-lab_evotec_-Macrovector.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":135224,"url":"https:\/\/alphastreet.com\/india\/laurus-labs-limited-q2-fy23-earnings-conference-call-insights\/","url_meta":{"origin":155151,"position":2},"title":"Laurus Labs Limited Q2 FY23 Earnings Conference Call Insights","author":"Praveen","date":"October 27, 2022","format":false,"excerpt":"https:\/\/youtu.be\/ZaM0EH45MvA Key highlights from Laurus Labs Limited (LAURUSLABS) Q2 FY23 Earnings Concall Management Update: [00:10:45] LAURUSLABS said that on the R&D front, it\u2019s continuing to allocate critical resources to its initiatives and invest in portfolio with product-specific approach based on complexity and scale of economies. The company added that it\u2019s\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/11\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":156074,"url":"https:\/\/alphastreet.com\/india\/aurobindo-pharma-limited-q2-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155151,"position":3},"title":"Aurobindo Pharma Limited Q2 FY24 Earnings Conference Call Insights","author":"Praveen","date":"November 10, 2023","format":false,"excerpt":"Key highlights from Aurobindo Pharma Limited (AUROPHARMA) Q2 FY24 Earnings Concall Revenue Growth Revenue grew 25.8% year-on-year to INR7,219 crores, driven by growth across formulations, APIs, and geographies. 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