Laurus Labs Q3 Results: Profit Grows Fourfold, Revenue Up 18%

Laurus Labs Ltd.'s third-quarter profit jumped fourfold, beating analysts' estimates.

Net profit of the Hyderabad-based pharma and biotech company increased 300% year-on-year to Rs 92.3 crore in the quarter ended December 2024, according to an exchange filing on Friday. That compares with the Rs 58-crore consensus estimate of analysts tracked by Bloomberg.

The Ebitda margin was marginally higher than 20% for the first time since March 2023. The management expected 25%.

• Revenue up 18% to Rs 1,415 crore versus 1,195 crore (Bloomberg estimate: Rs 1,336 crore).

• Ebitda up 57% to Rs 285 crore versus Rs 181 crore (Estimate: Rs 232 crore).

• Ebitda margin expands to 20.2% versus 15.2% (Estimate: 17.4%).

• Net profit up 300% at Rs 92.3 crore versus Rs 23.1 crore (Estimate: Rs 58 crore).

The company reported revenues of Rs 1,415 crore in the latest quarter, reflecting an 18% year-on-year growth, driven by strong performance in the contract development and manufacturing (CDMO) and finished dosage form (FDF) divisions, partially offset by a decline in active pharmaceutical ingredient (API) sales.

Gross margins improved by 260 basis points year-on-year to 56.9%, supported by a favorable product mix. Research and development expenses stood at Rs 60 crore, accounting for 4.2% of revenues, including CGT-related investments.

On the operating side, Ebitda surged 56% year-on-year and 57% quarter-on-quarter to Rs 285 crore, with margin expanding by 480 basis points year-on-year and 520 basis points sequentially to 20.1%, driven by strong operating leverage and a pickup in revenue momentum.