Super-Exclusive Interview: Anil Singhvi in chat with Laurus Labs' Founder and CEO Satyanarayana Chava
The strong results of Q2 are because of the hard work of the entire team and the capex incurred by the company during the inception and over the years.
Super-Exclusive: Laurus Labs Q2 results are extremely strong and management expects good results in coming quarter as well, revealed Satyanarayana Chava, Founder and CEO. He says that the company will further invest Rs 1200 – 1500 cr to boost the growth of the company. Chava was speaking to Zee Business Managing Editor Anil Singhvi today.
आज का सबसे बड़ा इंटरव्यू
SUPER EXCLUSIVE INTERVIEW
कंपनी के तिमाही आंकड़े एकदम सही और सटीक हैं, आने वाले तिमाही में और अच्छे नतीजों की उम्मीद...ग्रोथ बढ़ाने के लिए कंपनी ₹1200-1500 करोड़ का करेगी निवेश- सत्यनारायण चावा, फाउंडर & CEO, @LaurusLabs#LaurusLabs @AnilSinghvi_ pic.twitter.com/LEiZudod77
— Zee Business (@ZeeBusiness) October 30, 2020
Satyanarayana Chava highlights that the company has started to invest in formulation business from 2014. Any new business will take 3 to 4 years to start giving results and revenues started flowing from formulation business from 2019 onwards. Company has invested Rs 700 cr in Capex and Opex so far in formulation business which started giving results. He said, "The strong results of Q2 are because of the hard work of the entire team and the capex incurred by the company during the inception and over the years." He said that this is not a one-off quarter. He said that the management is confident that result will be strong in the coming quarter as well and will be better than Q2 as well.
Chava said that the numbers are absolutely correct and also in coming quarters they will perform even better. Future quarter results will be much better than the past quarters. Management is planning to invest 1200 cr to 1500 cr more to meet demand and boost growth of the company.
He added that the management is extremely confident about the future prospects of the company. Management is confident that they will be able to maintain Revenue growth going forward and will be able to sustain gross margins and EBITDA margins at current levels.
Furthermore, Chava says that the Order book is highest in the history of the company so far. Also, if at all companies were stocking up inventory due to corona than company might not have such large order book. Business coming due to corona crisis is zero for the company, he revealed.
Company’s growth is coming for investment done over the years in Infrastructure and products, rather than coming due to Coronavirus. Strong results of Q2 are not due to coronavirus. If investors believe that the growth is coming on account of coronavirus crisis, that’s not the fact. He said, "Growth is coming from our internal strengths. Company is growing not because of weakness in industry or economy; it is growing because of strong business environment for the company. Since the growth for the company happened during corona crisis, people believe growth happened because of it."
Lastly, Satyanarayana Chava says Promoter holds 30% of the shares and will also release the pledged shares soon from the market. Chava said company just finished 15 years of incorporation; it is company's responsibility to take care of all out stakeholders which includes employees, suppliers, customers and shareholders. Company is more worried about the benefit of the stakeholders and not of the outsiders who claim that Laurus Labs is a bogus company and have no idea about how to run the business.
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He averred that management doesn’t want to get distracted and lose their focus by these false allegations; instead, they would like to focus on the growth of the company. Chava said, "All our stakeholders (investors, employees, customers, suppliers and shareholders) are extremely happy with the company’s performance."
He concluded by saying, "Shares sold by the promoter are from the person who is no longer the promoter of the company, that person left the company 3 years ago. Couple of days ago that person was de classified as the promoter of the company; since that person sold his stake it is showing in the system as promoters sold. However, that person is no more the promoter of the company.
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