Dr Satyanarayana Chava isn’t afraid of grabbing the bull by its horns. The chief executive of Laurus Labs has probably been asked this question ad nauseum and he moves fast to address why the company didn’t perform in the three years since its public offering.
The answer in his mind is simple. And it also provides a window into the recent outperformance of the entire Indian pharmaceutical industry. Some part is cyclical and an equal part is on account of the new business opportunities for the industry. But a large part of the sudden surge in profitability comes from investments made in the last five years finally paying off. “This is not an industry where you have results in a year. It takes time for the work to show,” he explains.
The result has been the ₹300 crore that the company invested every year since 2016 in plants, research, scientists, filing abbreviated new drug applications and drug master files bearing fruit in the last two quarters and cementing Laurus’s status as an up-and-coming pharma company.
In the fiscal year ended March 2020, the company saw its net profit rise by 174 percent to ₹255 crore. It followed it up in the first quarter of this financial year by clocking in ₹171 crore or two-thirds of last year’s profit. The increasing profitability has been accompanied by rising margins, which rose from 16 percent to 29 percent between the first quarter of last fiscal and the first quarter of the current fiscal. At the margins, Laurus’s numbers compare favourably with Aurobindo Pharma and Sun Pharma, but are behind Divis Laboratories.
Bu hikaye Forbes India dergisinin September 11, 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Forbes India dergisinin September 11, 2020 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
