The company had reported a net profit of Rs 202 crore during the same period of the previous year. On a quarter-on-quarter (QoQ) basis , the net profit was down 7%.

Revenues rose 31.3 percent YoY to Rs 1,576 crore in Q2FY23, compared to Rs 1,203 crore last year.

The earnings before interest, tax, depreciation and ammortisation (EBITDA) margins dropped 40 basis points YoY to 14.8%.

Custom synthesis or CDMO business that constitutes about 43% of total revenues rose by four times to Rs 720 crore, while the active pharmaceutical ingredient (API) business that constitutes 46%, rose 29% YoY to ₹ 680 crore during Q2FY23.

The company said the growth of CDMO business was led by business from existing customers and increased off-take. The company added that expansion in CDMO capabilities on track to capture new opportunities and accelerate growth.

“In the first Half of 2023 Laurus Lab’s delivered healthy results. It reflects our efforts towards strengthening and diversifying our business by increasing revenues from CDMO and non ARV API and formulations,” said Satyanarayana Chava founder and CEO of Laurus Labs.

“ARV FDF performance was very weak, impacted by lower volumes and adverse pricing but we expect good reversal in H2,” Chava said.

Chava added that the company will continue to prioritize investments on non-ARVs and guided EBITDA margins of 30% in FY23.