Laurus Labs Limited — Earnings Release 2023

Jan 30, 2023

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January 30, 2023

To To The Corporate Relations Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroz Jeejeebhoy Towers, 25[th] Floor, Exchange Plaza, Dalal Street Bandra Kurla Complex, Bandra (East) Mumbai – 400001 Mumbai – 400 051 Code: 540222 Code: LAURUSLABS

Dear Sirs,

Sub: Press Release

Please find enclosed the Press Release on the financial results for the quarter and Nine months ended December 31, 2022.

Please take the information on record.

Thanking you,

Yours sincerely, For Laurus Labs Limited

Digitally signed by VENKATESWAR VENKATESWAR REDDY REDDY GOGIREDDY GOGIREDDY Date: 2023.01.30 12:00:55 +05'30'

G. Venkateswar Reddy Company Secretary & Compliance Officer

Encl: As above

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LAURUS LABS LIMITED

Laurus Labs sustains strong momentum in Revenues and Profits for 9M FY23

Hyderabad, January 30, 2023: Laurus Labs Ltd. (Laurus BSE: 540222, NSE: LAURUSLABS, ISIN: INE947Q01028), a leading research and development driven pharmaceutical and biotech company in India announces its Q3 & 9M FY23 results.

9M FY23 :

• Revenue at ₹ 4,660 crs, increased 33 % (Y-o-Y)

• EBITDA at ₹ 1,307 crs, increased by 26 % (Y-o-Y)

• EBITDA margins at 28 %

• PAT at ₹ 687 crs, increased by 15 % (Y-o-Y)

• PAT margins at 15 %

• EPS (Diluted) (face value of ₹ 2/-) for the period at ₹ 12.7 per share (not annualised)

Q3 FY23 :

• Revenue at ₹ 1,545 crs, increased 50 % (Y-o-Y)

• EBITDA at ₹ 404 crs, increased by 39 % (Y-o-Y)

• EBITDA margins at 26.1 %

• PAT at ₹ 203 crs, increased by 32 % (Y-o-Y)

• PAT margins at 13 %

• EPS (Diluted) for the period at ₹ 3.7 per share (not annualised)

Commenting on the highlights, Founder and Chief Executive Officer Dr. Satyanarayana Chava stated

“Our Q3 and 9M of 2023 results reflects sustained business momentum across our key growth drivers, which is visible in our commercial execution within CDMO, and Non-ARVs generic portfolio. The growth is also supported by anticipated recovery in ARV FDF segment, which is likely to continue despite pricing challenges. Our recent success with the Global funds HIV procurement as ‘Panel Supplier’ demonstrates our committed to the cause of HIV. We also made additional advancements in our R&D initiatives and brought new capacities on line.

We continue to execute on our strategy, prioritize investment into durable growth pillars, scaling up capacities and deliver profitable growth in long run.

JANUARY 30, 2023

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Commenting on the results, V V Ravi Kumar, Executive Director & Chief Financial Officer said;

“We are pleased to report another strong quarter with operational results on expected lines. In Q3 FY23, Laurus Lab clocked 50% revenue growth to ₹ 1,545 crs, driven by continued strong demand in our CDMO-Synthesis business and steady ramp up in API business. During 9M FY23, our overall operational performance was healthy; Revenues are up 33% to ₹ 4,660 crs and EBITDA grew by 26% with EBITDA margins of ~ 28%. Our ROCE on annualised basis stood healthy ~26% with comfortable Balance sheet position.. We believe our Capital allocation framework including commitment towards diversification and strengthening non-ARV portfolio, building niche capabilities, and improving operational efficiency will continue to be in force in creating long term value”.

Business Highlights:

Overall

• Total Income for Q3 at ₹ 1,545 crs growth of 50 % (Y-o-Y). During 9M FY23 Total Income increased by 33% to ₹ 4,660 crs

• Performance driven by Strong CDMO-Synthesis and Other APIs more than compensated for overall drag in ARVs revenues

• R & D spent of ₹ 153 crs and at ~4% of Revenues in 9M FY23

Generic FDF

• FDF revenues for the quarter declined by 33% to ₹ 249 cr. During 9M the revenues decreased by 46% to ₹ 747 cr

• Growth is impacted by lower demand and adverse price in the ARV formulations. Nevertheless, segment recovered in Q3 from Q2 lows and is expected to further normalise.

• Selected by The Global Fund as ‘Panel Supplier’ to produce ARV drugs for 2023-2025 period. The supplies will begin from 2024

• During 9M, 8 product dossiers were filed in Developed markets and a total of 10 approvals were received (including Tentative)

• First New Drug Application (NDA) with the US FDA for Pediatric HIV based on ODF technology platform

• Cumulatively filed 36 ANDAs in US with 16 PARA IV filings and 11 FTF opportunities

• Unit-2 Brownfield capacity expansion - Gradual ramp-up expected

Generic API

• API business reported revenue of ₹ 632 Cr during Q3, increased by 49% YoY. During 9M the revenues increased by 26% to ₹ 1,895 Cr

• Other APIs strong growth for Q3 and 9M at +33% and +65% following ramp up in the new contract supplies

JANUARY 30 , 2023

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• ARV business witnessed volume led improvement, growing +86% YoY on a favourable low base

• Filed 330 patents out of that 203 patents granted as of Dec’22

• Filed 77 DMFs till date (vs. FY22: 73 DMFs)

Synthesis

• Increased revenues by +210% YoY to ₹ 642 cr for Q3. During 9M, revenues have grown +248% to ₹ 1,939 cr .

• Growth supported by favourable market trends along with execution of commercial projects.

• Actively working on over 60 projects and On-going supplies for four commercial APIs and several intermediates.

• Expansion in CDMO capability on track to include new opportunities and new platform technologies

Bio Division

• Largely Soft quarter and clocked Q3 sales of ₹ 22 cr. 9M sales increased by 22%

• Unexpected downtime in Q3 led to production delays for CMO projcts

• New Capacity implementation at existing site currently in the ramp up phase

• Initiated on regulatory approval for a sizeable land parcel adjacent to our existing R2 - Expect expansion in phased manner

• New site to strengthen Laurus capabilities in AOF proteins and Growth factors

JANUARY 30 , 2023

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About Laurus | Laurus Labs is a fully integrated pharmaceutical and biotechnology company, with a leadership position in generic Active Pharmaceutical Ingredients (APIs) and a major focus on anti-retroviral, oncology drugs, Cardiovascular, Gastro and Hepatitis C therapeutics. We also develop and manufacture oral solid formulations, provide contract research and manufacturing services (CRAMS) to Global pharma companies.

We are passionate about advanced chemistry skills. Our proven expertise in bringing innovative solution, manufacturing efficiencies and unwavering quality focus has won us long-standing relationship with our global customers. Laurus employs 5700+ people, including around 800+ scientists at more than 8 facilities approved by major regulatory agencies USFDA, WHO-Geneva, UK-MHRA etc. During FY2022 Laurus generated over ₹ 4,900 crore in annual revenue and is listed on the BSE (Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. Laurus' proactive stance to conduct business with utmost Transparency, Integrity and Respect for environment & communities have earned it a place in Governance benchmark, consistently Certified Great Place to Work and Rated “BBB” by leading MSCI ESG Ratings.

Corporate Identification No: L24239AP2005PLC047518

For more information about us, please visit http://www.lauruslabs.com or Contact particulars:

Media Relations	Investor Relations
Vivek Kumar	Pavan Kumar N
Tel:+91 40 3980 4380	Tel:+91 40 3980 4366
Email: mediarelations@lauruslabs.com	Email:investorrelations@lauruslabs.com

DISCLAIMER: Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties like regulatory changes, local political or economic developments and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Laurus Labs Limited (Laurus) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward-looking statements to reflect subsequent events or circumstances.

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JANUARY 30 , 2023

Press Release