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To double capex this year; targeting $1 billion revenue by FY23: Laurus Lab

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Laurus Labs posted good Q4 results with all segments continuing to show strength. Active Pharmaceutical Ingredient (API) revenue is up 88 percent and formulations are up 61 percent year on year. Margins have also expanded to above 30 percent this quarter.

Laurus Labs posted good Q4 results with all segments continuing to show strength. Active Pharmaceutical Ingredient (API) revenue is up 88 percent and formulations are up 61 percent year on year. Margins have also expanded to above 30 percent this quarter.
“We do expect reasonable growth in the FY22 but what we are also very confident to maintain EBITDA margins above 30 percent,” Satyanarayana Chava, Founder and CEO Laurus Labs told CNBC-TV18.
“We also continue to invest into infrastructure. Last year we have done Rs 700 crore capex and FY22 and FY23 put together we have earmarked between Rs 1,500-1700 crore capex further to augment our capacities,” he said.
On drug shortage and supply chain issues Chava said, “Our growth has nothing to do with any drugs related to COVID. Our growth predominantly came from antiretroviral, some in Oncology, and contract manufacturing for other generic companies. As of now, we haven’t seen any disruption in supply from China, although the logistic cost went up significantly we haven’t seen any disruption in supplies. We don’t expect this COVID situation right now will have major impact on the supply chain.”
On revenues, he said, “Our growth in revenue last year was close to Rs 2,000 crore. In FY21 we have put Rs 700 crore capex and we have plans to put another Rs 1,500-1700 crore in FY22-FY23 that is to grow our revenues in FY22 and FY23 and our internal target is to cross it $1 billion revenue by FY23.”
On raw material price, he said, “In my option, the raw material price increase is because of higher demand. Whereas products what we are making demand hasn’t short up significantly so we haven’t seen such an increase in raw material prices so we are not passing on any of the logistic cost increase to our customers.”
For full interview, watch accompanying video...
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