On July 28, Laurus Labs shares slipped 3% in early morning trade after the company reported dismal earnings for the April-June quarter, which provoked brokerages to withdraw a bleak growth outlook for the pharmaceutical company.

The company reported an 88.8% plunge in combined net profit amid a 23.2% slide in revenues during the April-June period. Additionally, operational metrics endured weak as the EBITDA margin eroded shortly to 14.1% in April-June, from 29.5% in the base quarter. The Q1 EBITDA margin was also historically the lowest on a quarterly basis for the drug maker. The pharma firm conveyed a profit of Rs 252.5 crore in the year-ago quarter.

At 12.20 pm, Laurus Labs shares were trading 2.92% lower at Rs 333.85 on the NSE. Yesterday, the stock closed 1.13% higher at Rs 345.

Moreover, the management also reserved its sales outlook for FY24 as it anticipates revenue expansion of base pipeline projects and 2H Animal health agreement provisions kick-off in the CDMO (Contract Development and Manufacturing Organisation) business. The CDMO synthesis commercial fell 57% YoY amid large purchase orders in the base year.

The company also assumes growth in prevailing and new CMO contracts (Diabetic & CV portfolio) across critical markets, key product approvals and better perceptibility in ARV business in generics. It also thinks of ramping up new capacity executed in the Bio segment.