The company’s revenue from operations during the quarter under review grew 12.7% yoy at Rs 5,390 million against Rs 4,784 million in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, tax, depreciation, and amortization) margin declined to 15.3% from 21.6% in the previous year quarter.
“Lower sales of CMO APIs and this shortfall arises due to lower demand from generic CMO opportunity in Q1. Major Raw material procurement prices increased significantly due to the shortage of intermediates due to environmental issues and closure of manufacturing facilities in China resulted in lower gross margins. This will be mitigated through alternative sourcing/in-house manufacturing and working on sales price increases from customers,” Laurus Labs said in a statement.
Rupee depreciation of 5.4% resulted in forex loss of Rs 54 million against Rs 19 million gains in Q1 and Rs 37 million gain in Q4 of FY18, it added.
The company said CMO APIs segment is expected to generate normal revenue from the second quarter onwards. It also in the process of developing in-house/alternative manufacturing source for the key materials which the company is currently sourcing from China, it added.
The stock of Laurus Labs was trading at its lowest level since listing on December 19, 2016, on the BSE. On the NSE, the stock hit an intra-day low of Rs 427, quoting close to its record low of Rs 419 hit on August 29, 2017.
At 11:01 am; the stock was trading 8% lower at Rs 432 on the BSE and NSE. A combined 244,467 equity shares changed hands on the counter on the BSE and NSE.
In December 2016, the drug maker had raised Rs 13.32 billion by issuing shares at price of Rs 428 per share.