Laurus Labs Q3 results: Pharmaceutical company Laurus Labs’ profit plummeted 88.6 per cent to Rs 23 crore in the December quarter (Q3FY24), from Rs 203 crore in the same quarter a year ago (Q3FY23).

The Hyderabad-based company’s revenue fell 22.6 per cent to Rs 1,194.9 crore in Q3FY24, from Rs 1,544.8 crore in Q3FY23.

Satyanarayana Chava, Founder and Chief Executive Officer (CEO) of Laurus Labs said, “While Q3 headline results were subdued, the underlying financial strength of our businesses and demand visibility have remained resilient.” 

During the quarter, the pharmaceutical company’s operating profit plunged 55 per cent to Rs 181.4 crore, from Rs 403.6 crore in the same quarter a year ago. Its margin dropped 1,090 basis points (bps) to 15.2 per cent in the December quarter, from 26.2 per cent in Q3FY23.

The spend on new initiatives including cell & gene therapy, animal health stood at Rs 24 crore in the December quarter. 

“We expect overall business momentum to pick up, supported by a healthy order book and execution on strategic manufacturing partnerships along with ongoing realisation of cost initiatives driving improvement in operational results. In the first nine months of the current fiscal year, Laurus Lab invested a total of Rs 576 crore capital expenditure (Capex) and we are on track to execute on our future capex as scheduled. We will continue to prioritise investments in our business and growing pipeline to drive near and long-term growth across our portfolio,” said  V V Ravi Kumar, Executive Director & Chief Financial Officer (CFO) of Laurus Labs.

The market capitalisation of the company is Rs 21,022 crore, according to Bombay Stock Exchange (BSE).

Notably, the shares fell sharply after the company announced its quarterly results. Laurus Labs settled 2.28 per cent lower at Rs 390.05 per share.