Laurus Labs Ltd. · NSE:LAURUSLABS
Laurus Labs — Q1 FY2025 Earnings Presentation
31 slides from Laurus Labs's earnings presentation, Jul 25, 2024
Slide 1: Cover letter to BSE and NSE: Investors / Analysts Presentation
July 25, 2024 To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers, 25th Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS Dea
Slide 2: Q1 - FY 2025 Financial Results
Q1 - FY 2025 Financial Results 25/07/2024 © 2024 Laurus Labs Ltd.
Slide 3: Safe Harbor Statement
Safe Harbor Statement This presentation contains statements that constitute “forward looking statements” including and without limitation, statements relating to the implementation of strategic initiatives, and other statements relating to our future business developments and economic performance. W
Slide 4: Agenda
Agenda 1 Q1 FY 2025 Corporate Overview 2 Q1 FY 2025 Financial Overview 3 Q1 FY 2025 Business Review & Strategy 4 Outlook © 2024 Laurus Labs Ltd. Q1 - FY25 Results Presentation 25/07/2024
Slide 5: Corporate Overview
1 Corporate Overview Q1 FY 2025
Slide 6: A new enhanced identity resonates our commitment to deliver value to patients
A new enhanced identity resonates our commitment to deliver value to patients and successively, create value for shareholders Chemistry for Better Living 2024 Published remains our guiding principle, reflecting our Integrated Report* dedication to leverage scientific innovation and Innovation chemis
Slide 7: Executive Summary
Executive Summary • ₹ 1,195 Cr Revenues and 1% revenues growth; Soft Q1 on expected line and should pick up in H2 led by scheduled project deliveries in CDMO • Sustained momentum in Key CDMO projects while strengthened scientific expertise • ₹ 171 Cr EBITDA resulted in a margin of 14.3%, impact from
Slide 8: Key Updates – Q1 FY25
Key Updates – Q1 FY25 • Soft CDMO performance driven by significant resource allocation towards several mid/late -stage complex/high value ongoing projects while healthy order book momentum continued • Extended granulation and formulation packaging lines to deliver CMO commitments under progress • N
Slide 9: Update on key CAPEX projects – Assets coming online to drive growth
Update on key CAPEX projects – Assets coming online to drive growth CDMO, Vizag BIO, Bangalore Animal health (AH) 2 • Significant Microbial fermentation Drug substance development & manufacturing including High potent Fermentation, AOF r-proteins capacity build up commenced in Vizag API block 1 & 2
Slide 10: Commercial CDMO and growth project ramp-up to improve Assets utilization
Commercial CDMO and growth project ramp-up to improve Assets utilization Targeting Average asset turnover levels over Significant allocation in high return API/CDMO Growth investments prioritized next 3 years projects supported by integrated DP capability with attractive return and secure customer b
Slide 11: Transformative technology investments – Key updates
Transformative technology investments – Key updates Cell and Gene therapy (CGT) • NexCAR-19 meets strong market interest – delivered >150 infusions and expanding collaboration with >60 leading oncology centers • Preparation for BCMA1 to enter Clinical phase on going 31% • 2nd GMP CAR-T facility buil
Slide 12: Growing network of 'D+M' Sites with increasing Capacities across 14 Sites
Growing network of ‘D+M’ Sites with increasing Capacities across 14 Sites India, Visakhapatnam A F Unit-1, Parawada Unit-3, Parawada Unit-5, Parawada Unit-2, Atchutapuram Unit-4, Atchutapuram Unit-6, Atchutapuram LSPL-1,Parawada LSPL-2, Atchutapuram 1,279 KL A C 2,318 KL A R 161 KL ^ C 10Bn1 units,
Slide 13: Financial Overview
2 Financial Overview Q1 FY 2025
Slide 14: Financial Performance 1Q/FY25
Financial Performance 1Q/FY25 1Q/FY25 Consolidated Financials Comments [₹Crore] 4Q/FY24 1Q/FY251 1Q/FY24 Y-o-Y Q-o-Q • Revenues : ₹ 1,195 Cr, increased 1% Y/Y, driven by growth in API (Onco led) Revenues 1,440 1,195 1,182 +1% -17% and firm demand in ARVs offset by subdued delivery in CDMO Gross Marg
Slide 15: Summary Quarter Performance
Summary Quarter Performance EBITDA & Gross Profit Margins Revenues [₹ Cr] 900 58.0% Core Covid-19 PO [₹ Cr] 55.1% 53.4% 54.3% 55.1% 50.6% 52.5% GPM 49.7% 49.8% 800 1,576 1,545 48.0% 700 1,381 1,440 600 38.0% 1,224 28.5% 26.1% 1,182 1,195 1,195 500 20.8% 28.0% 400 18.0% OPM 300 14.2% 15.4% 15.3% 14.3
Slide 16: Business Review & Strategy
3 Business Review & Strategy Q1 FY 2025
Slide 17: Business Performance 1Q/FY25
Business Performance 1Q/FY25 1Q/FY25 Divisional Revenue Performance CDMO-Synthesis: Decline (-14%) on expected lines with prioritised resourcing for [₹ Crore] 4Q/FY24 1Q/FY25 1Q/FY24 Y-o-Y Q-o-Q complex projects in early phases. Scheduled deliveries for key late CDMO-Synthesis 236 214 250 -14% -9% p
Slide 18: CDMO Synthesis – Q1 inline; Committed deliveries driving Full year growth outlook
CDMO Synthesis – Q1 inline; Committed deliveries driving Full year growth outlook Revenue Growth Comments [₹ Cr] Y-o-Y ▼ 14% • Soft growth on expected lines driven by significant resource Q-o-Q ▼ 9% allocation towards delivering multiple high value complex programs in early/mid/late phases, reflects
Slide 19: CDMO Synthesis – Other key updates
CDMO Synthesis – Other key updates • Working on over 20 active projects (across value chain) in Animal health and Crop Protection chemicals; commercial validation supplies ongoing • Key growth CAPEX projects progressing in line with plan; Animal health facility 1 under early ramp-up phase, R&D cente
Slide 20: API – Growth of +10%, supported by strong Onco delivery and ARV resilience
API – Growth of +10%, supported by strong Onco delivery and ARV resilience Revenue Growth API Sales mix [₹ Cr] 745 9% 15% 19% 20% 18% 664 597 629 23% 574 24% 22% 25% 22% Onco API Y-o-Y ▲ 11% Other API Q-o-Q ▼ 11% ARV API 68% 61% 59% 55% 60% 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY24 FY24 FY24 FY24 FY25 FY24
Slide 21: FDF – Temporary weakness; Recent US approvals gearing up for launches
FDF – Temporary weakness; Recent US approvals gearing up for launches Revenue Growth Global Filings * Includes 14 Tentative 65 [₹ Cr] 430 approvals in US 15 367 332 41 285 274 Y-o-Y ▼ 4% 6 Q-o-Q ▼ 36% 22 50 18 35 3 7 15 15 US EU Canada ROW 1Q 2Q 3Q 4Q 1Q Pending Approved FY24 FY24 FY24 FY24 FY25 • D
Slide 22: Other updates including JV
Other updates including JV Signed new multi-year Customer agreement • Significant CAPEX funded by Customer • Granulation and formulation packaging line enhancement under progress - Expanded lines to go on stream in next 12-18 months KRKA JV update 1 • JV company incorporated in April 2024 • To addre
Slide 23: BIO – Continued positive market demand
BIO – Continued positive market demand Revenue Growth Comments [₹ Cr] Y-o-Y ▼ 14% • Delivered stable Q1, positive market demand dynamic in Bio- Q-o-Q ▲ 48% offering continued 50 • Strong growth in our enzyme engineering and production for small molecule, clinical and commercial API projects 42 43 39
Slide 24: Diversifying underlying business growth, backed by Integrated model
Diversifying underlying business growth, backed by Integrated model Healthy revenue growth through robust model Continued diversification of our business mix FY 18 FY 24 160 727 [₹ Crores] 3% 438 5,041 18% 658 1002 2,056 Cr 9% 5,041 Cr 50% 2,056 ARV; 73% 20% +16% CAGR ARV API (Onco+Others) FDF (nARV
Slide 25: Expanding R&D capabilities - Delivering on customer focused sustainable solution
Expanding R&D capabilities - Delivering on customer focused sustainable solution Technology advancements Process science Pivotal R&D platform Growing Focus on small molecules Commercial scale Continuous flow reaction Qualified alternate flow-techniques (plug- qualified (CFR) 2471 1138 flow & micro c
Slide 26: R&D – Focused approach to pipeline built up have continued
R&D – Focused approach to pipeline built up have continued Investing in Portfolio with Product Specific Approach Diverse pipeline with 80 product filings and 65^ based on Complexity and Scale to continue approvals across US, Canada and EU 500 6% ARV Anti- Diab. CVS CNS Others R&D spends (₹ Cr) As %
Slide 27: Proven track record of Global standard Quality systems
Proven track record of Global standard Quality systems “One Quality Standard for all Markets” 1140+ Quality audits & Inspection Global Customers, Regulatory Last US FDA inspection Authorities since inception Key Key Regulatory # audits (since Date EIR Status Facilities Certifications inception) 50+
Slide 28: Outlook
4 Outlook
Slide 29: Reaffirming FY 2025 Outlook
Reaffirming FY 2025 Outlook Revenues Base business PO ^ Indicative • Growth in FY 2025 driven by: FY25 - Not to scale - Leverage recognized platform capabilities to deliver Medium to +9% core long term contracts and commercial opportunity in late-phase growth NCE projects + Ride on positive Industry
Slide 30: Earnings call details
Earnings call details Laurus Labs Results Conference Call to be held on Thursday, 25 July 2024 at 5:00 PM IST Dial – In – Details Universal Dial-In +91 22 6280 1342 Click below to Express Join with India Local access Number +91 22 7115 8243 Diamond Pass Singapore 800 101 2045 Click here to register
Slide 31: About Laurus Labs
About Laurus Labs As a research-driven pharmaceutical manufacturing organization, Laurus Labs has been developing and assisting its client organizations to succeed in innovative medicines that globally enhance the health outcomes for patients. Since our inception in 2005, we have been developing and