Laurus Labs rallies 6% after reporting highest margin in four quarters

A better than expected set of first-quarter earnings for Laurus Labs saw the stock rally by 6.14 percent ending the day at Rs 513.80 per share on NSE.

The company reported 20 percent revenue growth versus the CNBC-TV18 poll of 7 percent, while margins came in at a four-quarter high of 29 percent versus an expectation of 27 percent.

The company’s net profit for the quarter ended June 2022 stood at Rs 251.3 crore versus CNBC-TV18 poll of Rs 211.3 crore.

The growth was led by Synthesis business which grew by 196 percent to Rs 577 crore on a year on year (YoY) basis. While the generic API segment saw a growth of 6 percent YoY.

However the formulations revenues were down 33 percent at Rs 349 crore due to subdued antiretroviral (ARV) business.

The management said they are focusing on strengthening the non-ARV API, formulations and Contract Development & Manufacturing Organization (CDMO) business. They also expect the ARV fixed dose formulations business to grow in the coming quarters.