Laurus Labs Ltd. witnessed a significant downturn, with its shares plummeting as much as 9% in early trade on Thursday, marking the largest single-day drop since May 2020. This sharp decline followed the company’s disappointing December quarter results that fell short of street expectations.
The December quarter reported an EBITDA margin of 15.3%, prompting the management to express confidence that operating leverage would propel margins back above 20% in the next financial year.
The company’s December quarter results revealed a net profit decline to ₹20 crore from ₹200 crore last year, while revenue also contracted by 22%, attributed to a high base. Adjusting for a large purchase order in the base quarter, the management highlighted an 11% growth in revenue for the December quarter.
Laurus Labs faced an increase in net leverage, with net debt to EBITDA on a trailing 12-month basis rising to 3x for the quarter ending December, compared to 1.9x in September and 1.3x in the same quarter last year.
As of 9:55 am, Laurus Labs shares continued their descent, trading 6.12% lower at ₹376.35.
