Laurus Labs Ltd's Q3FY19 consolidated net profit declines 48.9% yoy to Rs17.82cr : Misses Estimates

The company’s consolidated revenue stood at Rs529.46cr, up 10.55% yoy but down 10% qoq.

Feb 01, 2019 09:02 IST India Infoline Research Team

Laurus Labs Ltd Q3FY19

Consolidated Results Q3FY19: (Rs. in cr)

Q3FY19 YoY (%)
Revenue 529.46 10.5
EBITDA 87.72 0.4
EBITDA Margin (%) 16.6 [167]
Net Profit (adjusted) 17.82 [48.9]
***EBITDA margin change is bps
Laurus Lab’s revenue in Q3FY19 grew by 10.5% yoy to Rs529.5cr. EBITDA was flat at Rs87.7cr in Q3FY19 vs. Rs87.3cr in Q3FY18. EBITDA margins however declined from 18.2% in Q3FY18 to 16.6% in Q3FY19. On sequential basis, however, margins improved by 370bps. PAT in Q3FY19 declined by 48.9% yoy to Rs17.8cr vs. Rs34.9cr in Q3FY18. The results are below our expectations.

Other highlights
  • Revenue of its largest business i.e. ARV declined by 0.2% yoy to Rs320.2cr in Q3FY19 due to lower offtake from its customers.
  • Hepatitis-C business saw a steep decline of 19.3% yoy to Rs19.7cr. Company expects improvement in Q4FY19E.
  • Oncology API business increased by 31.4% yoy to Rs56.9cr in Q3FY19 on the back of new capacity additions.
  • Synthesis business saw growth of 20.4% yoy to Rs48.9cr in Q3FY19 due to high contribution from Unit-5 and also from CMO business.
  • Other API business saw a growth of 20.4% yoy to Rs48.9cr in Q3FY19.
  • Ingredients and generic fixed dosages businesses, each grew 34% yoy in Q3FY19.
  • For the 9MFY19, return on equity stood at 4.5% while debt/equity stood at 0.8x.
  • The R&D spend in 9MFY19 stood at 7.1% of its sales vs. 5.9% in FY18.
  • Company has said that the dip in ARV and Hep-C in Q3FY19 will be recouped in Q4FY19E with new product approvals and increased volumes.

Technical View:

Laurus Labs Ltd ended at Rs. 371.10, up by 10.05 points or 2.78% from its previous closing of Rs. 361.05 on the BSE.
The scrip opened at Rs. 365 and touched a high and low of Rs. 375 and Rs. 360 respectively. A total of 28,265 (NSE+BSE) shares were traded on the counter. The stock traded above its 200 DMA.

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