Laurus Labs Reports Negative Financial Performance in Q2 FY25

Laurus Labs, a leading pharmaceutical company in the largecap industry, has recently announced its financial results for the quarter ending September 2024. The company has seen a negative financial performance, with a score of -12, which has improved from -22 in the last three months.

One of the positive aspects of Laurus Labs’ financials is its Dividend Payout Ratio (DPR) – Annually, which is the highest at 26.86% and has grown each year in the last five years. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders.

However, there are some areas that are not working in favor of Laurus Labs based on its September 2024 financials. The Profit Before Tax less Other Income (PBT) – Quarterly has fallen by -65.05% Year on Year (YoY) to Rs 18.21 crore. This shows a very negative trend in the near term. Similarly, the Profit After Tax (PAT) – Quarterly has also fallen by -46.3% YoY to Rs 19.84 crore, indicating a negative trend in the near term.

Another concerning aspect is the Operating Profit to Interest – Quarterly, which is the lowest at 3.39 times in the last five quarters. This suggests that the company’s ability to manage its interest payments is deteriorating. Additionally, the Operating Cash Flow – Annually is also at its lowest in the last three years at Rs 665.69 crore, indicating a decline in the company’s cash revenues from business operations.

Overall, Laurus Labs’ financial performance for the quarter ending September 2024 has been negative. However, the company’s high DPR and consistent dividend payouts may still make it an attractive option for investors. MarketsMOJO has given a ‘Hold’ call for the company’s stock, suggesting a neutral stance for potential investors.