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Shares of Laurus Labs Ltd. plunged as much as 9 percent on Friday after it said that it will only manage to achieve 90 percent of its revenue guidance for the current financial year.

The company had guided to achieve $1 billion in revenue by financial year 2023.

Although the company said that it will achieve only 90 percent of their $1 billion guidance for the current financial year, they are counting this figure with the USD-INR rate at 72. From those levels, the currency has already depreciated 15 percent.

For the September quarter, the company's revenue increased 31 percent from last year to Rs 1,576 crore, which was higher than the estimate of Rs 1,539 crore. Revenue growth was led by the Synthesis business, which contributed to nearly half of the overall topline.

Growth in the synthesis business was offset by the formulations business, which declined 70 percent on a year-on-year basis, primarily due to softening demand and excess inventory which led to depressed pricing. However, the company expects this business to recover from the December quarter. The formulations or FDF business contributes to a tenth of overall revenue.

The company missed estimates on the operational and profitability front. Net profit of Rs 232.8 crore turned out to be well below street expectations of Rs 289.4 crore. Operating profit or EBITDA of Rs 448.9 crore also missed estimates of Rs 495 crore. Margin declined 20 basis points from last year to 28.5 percent while the street was working with a 30 percent figure.

Going forward, the management looks to maintain revenue growth and EBITDA margin of around 30 percent for the second half of the current financial year.

The company's Active Pharmaceutical Ingredients (API) business grew 29 percent during the quarter, led by new launches in the other API segment. The API business contributes 43 percent to the overall topline.

Shares of Laurus Labs ended 9.3 percent lower at Rs 477.