LAURUS LABS 2024-25 Annual Report Analysis

Wed, 4 Jun

LAURUS LABS has announced its results for the year ended March 2025. Let us have a look at the detailed performance review of the company during FY24-25.

LAURUS LABS Income Statement Analysis

• Operating income during the year rose 3.5% on a year-on-year (YoY) basis.
• The company's operating profit increased by 21.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 18.1% in FY25 as against 15.4% in FY24.
• Depreciation charges decreased by 6.7% and finance costs decreased by 0.4% YoY, respectively.
• Other income grew by 281.4% YoY.
• Net profit for the year grew by 126.1% YoY.
• Net profit margins during the year grew from 3.3% in FY24 to 7.3% in FY25.

LAURUS LABS Income Statement 2024-25

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Net Sales	Rs m	50,408	52,170	3.5%
Other income	Rs m	263	1,005	281.4%
Total Revenues	Rs m	50,672	53,175	4.9%
Gross profit	Rs m	7,775	9,443	21.5%
Depreciation	Rs m	3,846	3,588	-6.7%
Interest	Rs m	1,829	1,822	-0.4%
Profit before tax	Rs m	2,364	5,038	113.2%
Tax	Rs m	682	1,234	81.1%
Profit after tax	Rs m	1,682	3,804	126.1%
Gross profit margin	%	15.4	18.1
Effective tax rate	%	28.8	24.5
Net profit margin	%	3.3	7.3

Last Day: Access Our 4 Foundational Stock Recommendation Services at 75% OFF

LAURUS LABS Balance Sheet Analysis

• The company's current liabilities during FY25 stood at Rs 41 billion as compared to Rs 31 billion in FY24, thereby witnessing an increase of 32.0%.
• Long-term debt down at Rs 4 billion as compared to Rs 8 billion during FY24, a fall of 48.1%.
• Current assets rose 29% and stood at Rs 50 billion, while fixed assets rose 1% and stood at Rs 46 billion in FY25.
• Overall, the total assets and liabilities for FY25 stood at Rs 95 billion as against Rs 84 billion during FY24, thereby witnessing a growth of 14%.

LAURUS LABS Balance Sheet as on March 2025

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*	% Change
Networth	Rs m	40,895	45,379	11.0
Current Liabilities	Rs m	31,123	41,093	32.0
Long-term Debt	Rs m	7,982	4,143	-48.1
Total Liabilities	Rs m	83,870	95,340	13.7
Current assets	Rs m	38,350	49,540	29.2
Fixed Assets	Rs m	45,521	45,800	0.6
Total Assets	Rs m	83,870	95,340	13.7

LAURUS LABS Cash Flow Statement Analysis

• LAURUS LABS 's cash flow from operating activities (CFO) during FY25 stood at Rs 5 billion on a YoY basis.
• Cash flow from investing activities (CFI) during FY25 stood at Rs -6 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY25 stood at Rs 593 million on a YoY basis.
• Overall, net cash flows for the company during FY25 stood at Rs 77 million from the Rs 933 million net cash flows seen during FY24.

LAURUS LABS Cash Flow Statement 2024-25

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-24	Mar-25
Cash Flow from Operating Activities	Rs m	6,657	5,401	-18.9%
Cash Flow from Investing Activities	Rs m	-8,224	-5,917	-
Cash Flow from Financing Activities	Rs m	2,498	593	-76.3%
Net Cash Flow	Rs m	933	77	-91.7%

Current Valuations for LAURUS LABS

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 7.1, an improvement from the EPS of Rs 3.1 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 616.0, stands at 93.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.3 times, while the price to sales ratio stands at 6.4 times.
• The company's price to cash flow (P/CF) ratio stood at 37.7 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Sales per share (Unadj.)	Rs	93.5	96.7
TTM Earnings per share	Rs	3.1	7.1
Diluted earnings per share	Rs	3.1	7.0
Price to Cash Flow	x	38.2	37.7
TTM P/E ratio	x	125.7	93.8
Price / Book Value ratio	x	4.8	6.1
Market Cap	Rs m	195,146	278,551
Dividends per share (Unadj.)	Rs	0.8	1.2

Ratio Analysis for LAURUS LABS

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.2x during FY25, from 1.2x during FY24. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 3.8x during FY25, from 2.3x during FY24. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 8.4% during FY25, from 4.1% during FY25. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 13.9% during FY25, from 8.6% during FY24. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 5.9% during FY25, from 4.2% during FY24. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-24*	12 Mar-25*
Current ratio	x	1.2	1.2
Debtors’ Days	Days	12	14
Interest coverage	x	2.3	3.8
Debt to equity ratio	x	0.2	0.1
Return on assets	%	4.2	5.9
Return on equity	%	4.1	8.4
Return on capital employed	%	8.6	13.9

To see how LAURUS LABS has performed over the last 5 years, please visit here.

LAURUS LABS Share Price Performance

Over the last one year, LAURUS LABS share price has moved up from Rs 403.9 to Rs 616.0, registering a gain of Rs 212.1 or around 52.5%.

Meanwhile, the S&P BSE HEALTHCARE Index is trading at Rs 42,576.0 (up 0.0%). Over the last one year it has moved up from 34,392.3 to 42,576.0, a gain of 8,184 points (up 23.8%).

Overall, the S&P BSE SENSEX is up 5.7% over the year.

(To know more, check out historical annual results for LAURUS LABS and quarterly results for LAURUS LABS )