Alkem Laboratories Results: Latest Quarterly Results & Analysis

Pharmaceuticals company Alkem Laboratories announced Q1FY25 results:

• Total Revenue from Operations was Rs 30,318 million, with YoY growth of 2.2%.
• India sales were Rs 20,223 million, with YoY growth of 6.4%.
• International sales were Rs 9,677 million, with YoY de-growth of 4.6%.
• Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) were Rs 6,086 million, resulting in an EBITDA margin of 20.1% vs. 13.1% in Q1FY24. EBITDA increased by 56.4% YoY.
• R&D expenses for the quarter were Rs 1,257 million, or 4.1% of total revenue from operations, compared to Rs 1,202 million in Q1FY24 at 4.1% of total revenue from operations.
• Profit before tax (PBT) before exceptional items was Rs 6,194 million, a growth of 75.5% compared to Rs 3,529 million in Q1FY24.
• Net Profit (after Minority Interest) was Rs 5,452 million, with YoY growth of 90.1%.
• According to IQVIA (SSA—Stockist Sales Audit) data, for Q1FY25, the company registered a growth of 8.4% YoY compared to the Indian Pharmaceutical Market (IPM), which grew by 8.7%.

Commenting on the Q1FY25 results, Vikas Gupta, CEO of Alkem, said, “We are happy that our efforts to improve profitability have started paying off, and we have seen a marked increase in margins during the quarter. We are committed to maximising our EBITDA margin by carefully managing our product mix, controlling costs, and taking advantage of the favourable raw material pricing environment. The domestic business is our stronghold, and we expect to build on it by furthering the growth of our large brands and bridging portfolio gaps. Simultaneously, we are also focusing on growing our business in emerging markets. During the quarter, an important development was the successful resolution of US FDA’s Form 483 at the Baddi facility. At Alkem, we remain steadfast to prioritising quality and regulatory compliance.”

Result PDF

Pharmaceuticals company Alkem Laboratories announced Q4FY24 & FY24 results:

Q4FY24 Financial Highlights:

• Total Revenue from Operations were Rs 29,358 million, YoY growth of 1.1%.
• India sales were Rs 19,724 million, YoY de-growth of 1.9%.
• International sales were Rs 9,096 million, YoY growth of 6.1%.
• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 4,020 million, resulting in EBITDA margin of 13.7% vs. 12.2% in Q4FY23. EBITDA increased by 13.8% YoY.
• R&D expenses for the quarter was Rs 1,757 million, or 6.0% of total revenue from operations compared to Rs 1,472 million in Q4FY23 at 5.1% of total revenue from operations
• Profit before tax (PBT) before exceptional item was Rs 3,799 million, a growth of 20.7% compared to Rs 3,146 million in Q4FY23.
• Net Profit (after Minority Interest) was Rs 2,936 million, YoY growth of 313.6%.
• PAT for Q4FY23 was impacted on account of derecognition of deferred tax of Rs 1,197 million.
• Adjusted for the above item, PAT growth for Q4FY24 would have been 54%.
• As per IQVIA data, for Q4FY24, the company registered a growth of 1.4% YoY vs. the Indian Pharmaceutical Market (IPM) which grew by 5.7%

FY24 Financial Highlights:

• Total Revenue from Operations was Rs 1,26,676 million, YoY growth of 9.2%.
• India sales were Rs 84,337 million, YoY growth of 5.4%.
• International sales were Rs 40,024 million, YoY growth of 16.4%.
• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 22,455 million, resulting in EBITDA margin of 17.7% vs. 13.9% in FY23. EBITDA increased by 39.5% YoY.
• R&D expenses for FY24 was Rs 5,229 million, or 4.1% of total revenue from operations compared to Rs 5,394 million in FY23 at 4.7% of total revenue from operations
• Profit before tax (PBT) before exceptional item was Rs 21,446 million, a growth of 52.3% compared to Rs 14,078 million in FY23.
• Net Profit (after Minority Interest) was Rs 17,958 million, YoY growth of 82.5%.
• PAT for FY23 was impacted on account of derecognition of deferred tax of Rs 1,197 million. Adjusted for the above item, PAT growth for FY24 would have been 62.7%.
• As per IQVIA data, for FY24, the company registered a growth of 6.2% YoY, vs. the Indian Pharmaceutical Market (IPM) which grew by 7.6%
• We are pleased to share that the international business has crossed revenue of Rs 40 billion in FY24.

Commenting on the FY24 results, Vikas Gupta, CEO, Alkem said "Our focus has been to improve EBIDTA margin during the year, on the back of benefits through various cost -control initiatives being implemented along with favourable API prices. Continuing our trend of improved performance, Q4FY24 builds on the momentum gained from previous quarters with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in US. Lower Opex across our manufacturing facilities and R&D also aided EBDITA margin. Our Biosimilars and international business has delivered strong growth across geographies. Our anti-diabetic portfolio continues to outperform the market. We are committed to carrying forward the momentum of better operational performance, building on our recent success."

Result PDF

Pharmaceuticals company Alkem Laboratories announced Q3FY24 & 9MFY24 results:

Q3FY24 Financial Performance:

• Total Revenue from Operations: Rs 33,239 million, a YoY growth of 9.3%.
  • India sales: Rs 22,328 million, a YoY growth of 12.1%.
  • International sales: Rs 10,240 million, a YoY growth of 3.1%.
• EBITDA: Rs 7,076 million, resulting in an EBITDA margin of 21.3% compared to 19.7% in Q3FY23, indicating an 18.1% YoY increase.
• R&D expenses: Rs 1,111 million, representing 3.3% of total revenue from operations, compared to Rs 1,297 million in Q3FY23 at 4.3% of total revenue from operations.
• Profit before tax (PBT) before exceptional item: Rs 7,062 million, a growth of 31.0% compared to Q3FY23.
• Net Profit (after Minority Interest): Rs 5,950 million, a YoY growth of 30.8%.

9MFY24 Financial Performance:

• Total Revenue from Operations: Rs 97,318 million, a YoY growth of 11.9%.
  • India sales: Rs 64,613 million, a YoY growth of 7.9%.
  • International sales: Rs 30,928 million, a YoY growth of 19.8%.
• EBITDA: Rs 18,435 million, resulting in an EBITDA margin of 18.9% compared to 14.4% in 9MFY23, indicating a 46.8% YoY increase.
• R&D expenses: Rs 3,472 million, representing 3.6% of total revenue from operations, compared to Rs 3,922 million in 9MFY23 at 4.5% of total revenue from operations.
• Profit before tax (PBT) before exceptional item: Rs 17,648 million, a growth of 61.4% compared to 9MFY23.
• Net Profit (after Minority Interest): Rs 15,022 million, a YoY growth of 64.5%.

Commenting on the results, Dr Vikas Gupta, CEO, Alkem said, "Continuing our trend of improved performance, Q3 builds on the momentum gained in H1 with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in US market resulting in improved EBITDA margins. Our domestic business has outperformed IPM growth by 20bps. Our international business has delivered steady growth, although US business de-grew on the back of the high base of last year led by flu season. In non-US business across geographies, we achieved very healthy growth. Our biosimilars business is performing impressively and witnessing significant traction in the domestic biosimilars market with Enzene’s portfolio of 7 products. We are committed to carrying forward the momentum of better operational performance, building on our recent successes."

Result PDF

Pharmaceuticals company Alkem Laboratories announced Q2FY24 & H1FY24 results:

• Q2FY24:
  • Total Revenue from Operations was Rs 34,402 million, YoY growth of 11.7%
    • India sales were Rs 23,278 million, YoY growth of 5%
    • International sales were Rs 10,542 million, YoY growth of 27.1%
  • Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) was Rs 7,467 million, resulting in an EBITDA margin of 21.7% vs. 14.7% in Q2FY23. EBITDA increased by 64.5% YoY.
  • R&D expenses for the quarter were Rs 1,158 million, or 3.4% of total revenue from operations compared to Rs 1,305 million in Q2FY23 at 4.2% of total revenue from operations
  • Profit before tax (PBT) after the exceptional item was Rs 6,480 million, a growth of 61.1% compared to Q2FY23
    • Exceptional item of Rs 577 million debit was on account of impairment of fixed assets
  • Net Profit (after Minority Interest) was Rs 6,205 million, with YoY growth of 87.6%
• H1FY24:
  • Total Revenue from Operations was Rs 64,079 million, YoY growth of 13.3%
    • India sales were Rs 42,285 million, YoY growth of 5.8%
    • International sales were Rs 20,688 million, YoY growth of 30.2%
  • Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) was Rs 11,359 million, resulting in an EBITDA margin of 17.7% vs. 11.6% in H1FY23. EBITDA increased by 72.9% YoY
  • R&D expenses for H1FY24 was Rs 2,360 million, or 3.7% of total revenue from operations compared to Rs 2,625 million in H1FY23 at 4.6% of total revenue from operations
  • Profit before tax (PBT) after the exceptional item was Rs 10,009 million, a growth of 80.6% compared to H1FY23
    • Exceptional item of Rs 577 million debit was on account of impairment of fixed assets
  • Net Profit (after Minority Interest) was Rs 9,073 million, YoY growth of 97.9%

Commenting on the results, Sandeep Singh, Managing Director, Alkem said, " Continuing our trend of improved performance, Q2 builds on the momentum gained in Q1 with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in US market and increased operating leverage, resulting in improved EBITDA margins. Domestic growth for the quarter remained subdued due to sporadic monsoon. However, we observed significant traction in the domestic market during the month of September and anticipate continued momentum in the coming quarter. Our international business, both US and Non-US market maintains its robust performance, which was evident in Q1 and continues to flourish. Our biosimilars portfolio is performing impressively, with Enzene’s latest product addition (Ranibizumab), taking the product suite to 7, and witnessing significant traction in the domestic biosimilars market. We are committed to carrying forward the momentum of better operational performance, building on our recent successes."

Result PDF

Pharmaceuticals company Alkem Laboratories announced Q1FY24 results:

• Total revenue from operations was Rs 29,677 million, YoY growth of 15.2%
  • India sales were Rs 19,007 million, YoY growth of 6.7%
  • International sales were Rs 10,146 million, YoY growth of 33.4%
• Earnings before interest, tax, depreciation, and amortization (EBITDA) was Rs 3,892 million, resulting in an EBITDA margin of 13.1% vs. 7.9% in Q1FY23. EBITDA increased by 91.5% YoY.
• R&D expenses for Q1FY24 were Rs 1,202 million, or 4.1% of total revenue from operations compared to Rs 1,320 million in Q1FY23 at 5.1% of total revenue from operations.
• Profit before tax (PBT) was Rs 3,529 million, a growth of 132.3% compared to Q1FY23.
• Net profit (after Minority Interest) was Rs 2,867 million, YoY growth of 124.6%.

Commenting on the results, Sandeep Singh, Managing Director, Alkem said, "We are starting the year on a healthy note, showcasing better operational performance driven by improved margins resulting from softening of select raw material prices, favourable currency impact, easing of freight cost and implementation of some of our cost optimization efforts. Our acute business growth was impacted by the delayed onset of monsoon in certain parts of the country, yet we maintain an optimistic outlook for improved growth in Q2. International business achieved robust sales during the quarter, driven by substantial growth in our US operations and complemented by strong performance in non-US markets. Our biosimilar franchise, Enzene is steadily expanding its product portfolio in India, with two successful launches this quarter, bringing the total count of products to six—an impressive achievement for the company. Our cost optimization initiatives have started yielding tangible results and we remain committed to further unlocking operational efficiencies going forward.”

Result PDF

Alkem Laboratories announced Q3FY23 results:

•  Q3FY23:
  • Total revenue from operations was Rs 30,409 million, YoY growth of 16.1%
    • India sales were Rs 19,922 million, YoY growth of 9.7%
    • International sales were Rs 9,928 million, YoY growth of 28.8%
  • EBITDA was Rs 5,990 million, resulting in an EBITDA margin of 19.7% vs 19.0% in Q3FY22. EBITDA grew by 20.2% YoY
  • R&D expenses for the quarter were Rs 1,297 million, or 4.3% of total revenue from operations compared to Rs 1,449 million in Q3FY22 at 5.5% of total revenue from operations.
  • Profit before tax (PBT) was Rs 5,389 million, a growth of 16.2% compared to Q3FY22
  • Net profit (after minority interest) was Rs 4,547 million, YoY decline of 13.5%
• 9MFY23:
  • Total revenue from operations was Rs 86,967 million, YoY growth of 6.7%
    • India sales were Rs 59,898 million, YoY growth of 5.3%
    • International sales were Rs 25,823 million, YoY growth of 9.1%
  • EBITDA) was Rs 12,562 million, resulting in EBITDA margin of 14.4% vs 21.1% in 9MFY23. EBITDA declined by 26.8% YoY
  • R&D expenses for 9MFY23 was Rs 3,922 million, or 4.5% of total revenue from operations, compared to Rs 4,039 million in 9MFY22 at 5.0% of total revenue from operations.
  • Profit before tax (PBT) was Rs 10,931 million, a decline of 31.7% compared to 9MFY22
  • Net profit (after minority interest) was Rs 9,132 million, YoY decline of 40.6%

Commenting on the results, Sandeep Singh, Managing Director, Alkem said, “Building on the pace of Q1 and Q2, our domestic branded franchise delivered strong growth in Q3, beating market by more than 600 basis points [16.7% Alkem Vs 10.0% IPM]. After two quarters of subdued performance, our US business posted strong growth in Q3 on the back of a good season. In a recent development, our biosimilar franchise, Enzene Biosciences, raised about Rs 161 crore and partnered with Eight Roads Ventures and F-Prime Capital. This further instils our confidence and reaffirms our journey towards building a leading global biologics company that leverages innovation to enhance global health. During the quarter, the company generated healthy cash flows in excess of Rs 5 billion, which has helped us further strengthen our balance sheet with strong net cash position of Rs 19 billion.”

Result PDF

Pharmaceutical company Alkem Laboratories announced Q2FY23 results:

• Q2FY23:
  • Total revenue from operations was Rs 30,793 million, with YoY growth of 10.0%
    • India sales were Rs 22,161 million, with YoY growth of 13.0%
    • International sales were Rs 8,291 million, with YoY growth of 3.0%
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 4,539 million, resulting in EBITDA margins of 14.7% vs 22.3% in Q2FY22. EBITDA declined by 27.3% YoY
  • R&D expenses for the quarter were Rs 1,305 million, or 4.2% of total revenue from operations compared to Rs 1,407 million in Q2FY22 at 5.0% of total revenue from operations
  • Profit before tax (PBT) was Rs 4,023 million, a decline of 30.8% compared to Q2FY22
  • Net profit (after Minority Interest) was Rs 3,308 million, a YoY decline of 39.2%
• H1FY23:
  • Total revenue from operations was Rs 56,558 million, with YoY growth of 2.2%
    • India sales were Rs 39,976 million, with YoY growth of 3.3%
    • International sales were Rs 15,895 million, a YoY decline of 0.4%
  • EBITDA was Rs 6,572 million, resulting in an EBITDA margin of 11.6% vs 22.0% in H1FY23. EBITDA declined by 46.0% YoY
  • R&D expenses for H1FY23 were Rs 2,625 million, or 4.6% of total revenue from operations compared to Rs 2,590 million in H1FY22 at 4.7% of total revenue from operations
  • Profit before tax (PBT) was Rs 5,542 million, a decline of 51.3% compared to H1FY22
  • Net profit (after Minority Interest) was Rs 4,585 million, a YoY decline of 54.7%

Sandeep Singh, Managing Director, Alkem, said, “After a market-beating performance in Q1, our domestic franchise has significantly outperformed IPM even in Q2. We increased market share across all acute therapies, anti-diabetic and urology during this quarter. While our US business continues to face significant pricing pressure, our other international business is growing at a healthy pace. Various cost optimisation initiatives are underway which should help in building sustainable and profitable business and also drive margin expansion. We are receiving encouraging response for our biosimilar and CDMO franchise."

Result PDF

  Pharmaceuticals firm Alkem Laboratories Announced Q1FY23 Result :

• Total Revenue from Operations was Rs 25,764 million, YoY decline of 5.7%
  • India sales were Rs 17,815 million, YoY decline of 6.7%
  • International sales were Rs 7,604 million, YoY decline of 3.8%
• Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 2,032 million, resulting in EBITDA margin of 7.9% vs. 21.7% in Q1FY21. EBITDA declined by 65.7% YoY
• R&D expenses for the quarter was Rs 1,320 million, or 5.1% of total revenue from operations compared to Rs 1,183 million in Q1FY22 at 4.3% of total revenue from operations
• Profit before tax (PBT) was Rs 1,519 million, a decline of 72.7% compared to Q1FY22
• Net Profit (after Minority Interest) was Rs 1,276 million, YoY decline of 72.7%

Commenting on the results, Sandeep Singh, Managing Director, Alkem said, “We are starting the new fiscal year on a positive note, with yet another market beating performance in domestic market adjusting for huge base of last year [CAGR of 13.4%, Q1FY20-Q1FY23]. However, headwinds from price erosion in US market and inflationary environment has impacted margins for the quarter. As we move ahead, we remain focused on our journey of expanding margins through productivity improvement and various cost optimization initiatives across the organization. Our biosimilar franchise is shaping up well and we are looking forward to some exciting launches going ahead.”

Result PDF

Pharmaceuticals firm Alkem Laboratories declares Q4FY22 result:

• Key highlights of Q4FY22 financial performance:
  • Total Revenue from Operations was Rs 24,839 million, YoY growth of 13.3%.
    • India sales were Rs 17,187 million, YoY growth of 16.7%
    • International sales were Rs 7,411 million, YoY growth of 7.3%
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 3,372 million, resulting in EBITDA margin of 13.6% vs. 13.3% in Q4FY21. EBITDA grew by 15.8% YoY
  • R&D expenses for the quarter was Rs 1,634 million, or 6.6% of total revenue from operations compared to Rs 1,408 million in Q4FY21 at 6.4% of total revenue from operations
  • Profit before tax (PBT) was Rs 2,427 million, a decline of 6.0% compared to Q4FY21.
  • Exceptional Item of Rs 150 million debit was on account of fair value of an investment
  • Net Profit (after Minority Interest) was Rs 1,076 million, YoY decline of 55.2%.

Commenting on the results, Sandeep Singh, Managing Director, Alkem said, "FY22 was a mixed bag for the Company as our India business did well helped by COVID-19 tailwinds, while our US business faced significant pricing pressure. We forayed in the Indian respiratory segment with the launch of Pulmocare division which received an encouraging response. Our biotech subsidiary Enzene also made good progress with product launches in India and signing multiple product out-licensing deals. Going forward, while we are positive about our growth prospects given the levers we have built over the years, navigating the inflationary pressures of high raw material prices and increased freight rates, would be a key challenge for the Company."

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