Laurus Labs Ltd. reported an operating margin of 14.1 percent for the June quarter, which is down from the 29.5 percent margin it reported during the same period last year. The margin figure is also lower than the CNBC-TV18 poll estimate of 19.6 percent.
The company's margin were at a multi-quarter low and also declined for the fourth straight quarter.
For the June quarter, Laurus Labs reported a 23.2 percent year-on-year drop in overall revenue to Rs 1,182 crore. The company mentioned that the revenue for the quarter was impacted by particularly strong CDMO-synthesis revenue in the base quarter. The revenue figure was also lower than the CNBC-TV18 poll expectation of Rs 1,308.5 crore.
Net profit for the period also fell to Rs 24.8 crore from Rs 103 crore last year.
On the bright side though, the company retained its overall sales outlook for financial year 2024. Laurus has termed the current financial year as a year of consolidation. It further mentioned that there would be better visibility in existing and new contracts and the CDMO business will see animal health contract project kicking off.
The company's CDMO Synthesis revenue during the June quarter fell by nearly 60 percent year-on-year to Rs 250 crore. The Generic FDF revenue fell 18 percent to Rs 285 crore, while the Bio Division increased by 67 percent from last year to Rs 50 crore.
Shares of Laurus Labs fell as much as 3.3 percent post the earnings announcement but recovered from the day's low once the sales guidance was retained. The stock ended 1.1 percent higher at Rs 345.
First Published: Jul 27, 2023 3:30 PM IST
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