Laurus Labs Ltd

- Ongoing CAPEX of $100 million in synthesis expected to be reasonably utilized by mid of next financial year (FY25). - Majority of FY24 CAPEX focused on synthesis and bio divisions, with expansion projects on track to support future growth. - New capacity additions include 3 million liters of capacity and 5 billion tablets capacity in last three years. - Groundbreaking of Unit-7 in Vizag to add more capacity for CDMO with common infrastructure. - Creating common infrastructure and additional blocks at two sites to get regulatory approvals for servicing big pharma. - ImmunoACT is creating a facility ready by March 2025 to deliver additional 2,500 treatments per year. - Additional details on new CAPEX in new sites to be shared in the next quarter conference call.

- Revenue growth seen with 14% increase in underlying business for H1 FY24; Q2 growth at 18%. - Positive outlook for second half of FY24 and FY25, driven by increased sales across API (ARV, oncology, non-ARV), formulations, and CDMO segments. - Oncology API sales rebounded strongly with over 50% growth in H1 FY24; order book strong beyond Q4. - Non-ARV formulations growing, expected to be future growth driver as ARV market plateaus. - CDMO expected to improve with new facilities coming online mid-FY25; animal health and agrochemical projects scaling up. - New contract manufacturing deals and new product approvals in multiple markets (US, Canada, EU) support broad-based growth. - FDF business recovering with better utilization of capacity expected by end FY24. - EBITDA margins expected to improve towards 25-30% range as new capacities commercialize and revenue mix grows.

- The company expects growth in revenues driven by new US approvals, new contract manufacturing deals in APIs and formulations, as well as growth in oncology and non-ARV, non-onco API sales. - CDMO segment anticipated to regain strength with some projects moving into late clinical or commercial phase by next year (FY25/FY26). - EBITDA margin target is around 30% in the medium term, though no specific timeline is provided. - Near term (FY24) seen as a year of consolidation with expected flat to modest improvement in margins (EBITDA expected to improve beyond 15%, potentially towards 20%). - Capacities added in recent years (3 million liters and 5 billion tablets) expected to become fully utilized from FY25, driving leverage and improved margins. - Sequential momentum and order book strength especially in oncology and CDMO support optimism for second half FY24 and beyond. - EPS showed recovery (Q2 EPS 0.6, H1 EPS 1.1) with cautious but positive outlook for improving profitability.

- Laurus Labs currently has 62 active projects in its CDMO pipeline. - Out of these, 10 projects are commercial products (including APIs and advanced intermediates). - The remaining 60 projects are at various clinical stages (Phase II, Phase III). - The company mentioned a strong order book for H2 FY24, especially in the oncology API segment. - New CMO orders have been tied up and are expected to start ramping up, mainly in the second half of the fiscal year. - CDMO capacity expansions (including a new Unit-7 for CDMO) are ongoing to support increased order fulfillment. - The company is optimistic about order book growth and revenue improvement once the new capacities are fully utilized.

- There is no explicit mention of any current or future fundraising through debt or equity in the provided transcript. - The company is investing significantly in CAPEX, particularly in synthesis and bio divisions, with around Rs.182 crores invested in the quarter and Rs.385 crores in H1 FY24. - CAPEX is mostly funded internally as no details about fresh fundraises via debt or equity were disclosed. - Management indicated focus on cautious investment and strong capital deployment for future growth, but no intention or plan for raising new funds through debt or equity was shared. - The company highlighted ongoing capacity expansions and project investments backed by operational cash flows and strategic funding but refrained from providing any guidance on fundraising activities.