Laurus Labs - Result Update Q4FY21 & Full Year FY21

Laurus Labs - Result Update Q4FY21 & Full Year FY21

Twitter Handle: @shuchi_nahar

Laurus Labs Limited on 30th April 2021 announced its Q4FY21 and full-year results. 

Laurus Lab performed extremely well consecutive in the 4th Quarter of FY21. The company did a robust growth in all three segments. Having a healthy order book for FY 22. Consolidated revenue for the quarter increased by 70% driven by growth in all the divisions.

The company has been able to sustain its EBITDA margins, and profitability has also improved to Rs. 297 Crs. for the quarter. Generic API division showcased a robust growth of 61% YoY. Anti Viral segment recorded a robust growth of 70% YoY.

Revenue Showcased a healthy growth of 102% YoY. The growth was led by higher LMIC Market volumes and increased volumes from North America and EU Commenced marketing of in-licensed products in the USA to leverage front-end capabilities. Custom Synthesis division recorded a strong growth of 35% YoY.

Capacity Expansion – To cater to future demands

All the greenfield expansion has turned Cash positive in FY20 with near maximum utilization. Richcore will be renamed to Laurus Bio shortly. Laurus bio will be to cater the demands of food & fermentation and synergies are exciting for the same. With a vision of creating long-term sustainable growth, the company continues to undertake a major Capex program across all divisions. FDF - the capacity of 5 bn tablets/capsules per year. Capacity expansion initiated and will be operational by Q1 FY22.

Continue to undertake Brown Field Capex programs for Capacity addition in line with strong order book visibility and business outlook. Brown Field CAPEX in existing sites to have a shorter payback period and ROCE accretive. Acquired assets of an API Unit in Vizag to be used for backward integration and pre-clinical chemistry. Doubling their FDF capacity by FY22.

Debt Scenario

Business Highlights:

Generic FDF.

Revenue Showcased a healthy growth of 102% YoYGeneric FDF business maintains healthy growth momentum for the quarter. Commenced marketing of in-licensed products in the US by leveraging the front end. Contract manufacturing revenues from the EU region have a strong order book for FY21 and beyond.

PDF Business delivered robust growth for the quarter. This is driven by continued strong demand in the ARV segment of the LMIC region and portfolio expansion in developed markets. Overall FDF revenue for FY 21 grew by 102% YoY. Strong order book in all geographies. 2 Additional products validated as part of our CDMO expansion in EU. FDF capacity debottlenecking complete.  New manufacturing block will be commercialized by Sep 2021Doubling their FDF capacity by FY22.

Synthesis & Ingredients.

Custom Synthesis division recorded a strong growth of 35% YoY. Synthesis business delivered robust growth for the quarter. Total Number of Active Projects in the CDMO division stood at the end of FY21 was 50 (vs 40 in FY20). Multiple Partnership proposals are in the collaborative phase. Created a 100% subsidiary for Synthesis business and acquired a small facility at Vizag under this. Also, creating a dedicated R&D center for the Synthesis Division.

Generic API.

Generic API division showcased a robust growth of 61% YoY. Anti Viral segment recorded a robust growth of 70% YoYStrong demand in 1st line ARV API.  Order book position is robust. Adding more capacity to meet the growing demand. Other API segment (incl. CVS and Diabetes) reported good growth. Under discussion with Key Generic Partners for CM opportunity. Creating a dedicated block for Non-ARV APIs including expansion for High Potent capacity at Unit 4.

Healthy Order Book

Partnership with Global Fund offers higher volume contracts with reasonable predictability in the FDF Tender business. Have a healthy order book for FY 22 & beyond in FDF CMO business with a strategic partner in EU. Robust growth in Other API segments to continue on the back of higher-order book visibility from key therapeutic segments like CVS, Anti Diabetic, and PPIs. 

Several new customers added with programs in various clinical phases. Incorporated a Wholly Owned subsidiary to give increased focus and eventually dedicated R&D and Manufacturing for Synthesis Business. Other therapeutic areas and Oncology to offer consistent opportunities to broaden the scope, with ongoing new product introduction.

Changing business mix to drive growth

Generic FDF the segment contributed ~35% in FY 21 to total revenue as against just 2% in FY19. Non ARV API business to contribute significantly showcasing the speed of diversification of revenues.

The change in revenue & product mix to generate better profitability & margins. Synthesis business to show gains in line with new customer additions in CDMO. Acquired Aspen’s South African Subsidiary, in order to get a foothold in the worlds' largest Generic Accessible ARV market The Richcore (renamed as Laurus Bio) acquisition will help us enter into high growth segments of AOF products, Enzymes and Biologics.

15 Years of Patience, diligence & perseverance.

Here is the summary made for a quick and better understanding of the Result update for full-year FY21 and Q4FY21 from Laurus Lab Conference Call and Investor Presentation. 

To read a detailed analysis of the company: https://myweekendspot.blogspot.com/2020/09/laurus-labs-company-overview.html

Twitter Handle: @shuchi_nahar

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