Earnings Review
Alkem Labs Jul-Sept consol PAT growth lowest in 6 qtrs
This story was originally published at 16:31 IST on 13 November 2024
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--Alkem Labs Jul-Sept consol net profit INR 6.89 bln vs INR 6.21 bln yr ago
--Analysts saw Alkem Labs Jul-Sept consol net profit INR 6.82 bln
--Alkem Labs Jul-Sept consol revenue INR 34.15 bln vs INR 34.40 bln year ago
--Alkem Labs Apr-Sept consol net profit INR 12.34 bln vs INR 9.07 bln yr ago
--Alkem Labs Apr-Sept consol revenue INR 64.46 bln vs INR 64.08 bln year ago
--Alkem Labs Jul-Sept consol EBITDA INR 7.53 bln vs INR 7.47 bln year ago
--Alkem Labs Jul-Sept consol EBITDA margin 22.0% vs 21.7% year ago
--Alkem Labs Jul-Sept India sales INR 24.61 bln, up 5.7% on year
--Alkem Labs Jul-Sept International sales INR 9.18 bln, down 12.9% on year
--Alkem Labs Jul-Sept R&D expenses INR 1.47 bln vs INR 1.16 bln year ago
--Alkem Labs Jul-Sept US sales INR 5.98 bln, down 22.1% on year
By Akshita Kumar
MUMBAI – Alkem Laboratories Ltd.'s consolidated net profit for the September quarter beat analysts' estimates, but the consolidated revenue fell short of expectations. The company's consolidated net profit came in at INR 6.89 billion, up 11% on year, and higher than analysts' estimate of INR 6.82 billion. The on-year growth in net profit was the lowest in the last six quarters. Sequentially, the net profit rose 26%.
The company reported a consolidated revenue of INR 34.15 billion, down 0.7% on year, missing the analysts' estimate of INR 35.66 billion. The company's revenue declined marginally after growing on year for eight consecutive quarters. Sequentially, the company's revenue rose 12.6%.
The company's raw material cost during the quarter was INR 9.02 billion, up 9.4% on year. The cost of purchase of stock-in-trade was INR 3.54 billion, down 18.1% on year. The company's employee benefit expenses were INR 6.10 billion, up 9.9% on year. Other expenses were INR 8.47 billion, up 4.4% on year. The company's total expenses were INR 27.69 billion, down 1% on year.
The pharmaceutical company's other income more than doubled to INR 1.35 billion. For Apr-Sept, its consolidated net profit was INR 12.34 billion, up 36% on year. Revenue came in at INR 64.46 billion, up 0.6% on year.
The company's consolidated earnings before interest, tax, depreciation, and amortisation for the reporting quarter was INR 7.53 billion, up slightly on year. The EBITDA margin was 22%, slightly higher than 21.7% in the same period a year ago, the company said in a press release. Sales from the company's operations in India were INR 24.61 billion, up 6% on year. Domestic sales contributed 72.8% to the company's total sales, up from 68.8% a year ago.
The pharmaceutical company's sales from its international operations were INR 9.18 billion, down 12.9% on year. The company's revenue from its US operations was INR 5.98 billion, down 22% on year, and contributed 18% to total sales. The sales from its operations in other international markets, mainly Latin America, Australia, and Europe, contributed 9.5% to the total sales in the quarter.
The company's research and development expenses were INR 1.47 billion, up 27% on year. As per data from research firm IQVIA, the company's sales grew 6.3% on year in the September quarter, lower than the Indian pharmaceutical market, which grew 7.6%. The company registered a volume growth of 1.1% in the latest quarter, compared with no volume growth in the market, Alkem Laboratories said, citing data from IQVIA.
In the September quarter, the company launched one product in the US and received five approvals from the US Food and Drug Administration, including one tentative approval. As of Sept. 30, the company had filed 178 abbreviated new drug applications and two new drug applications with the US FDA. Of these, the company had received approvals for 152 abbreviated new drug applications, including 14 tentative approvals, and two new drug applications.
At 1501 IST, shares of the company traded at INR 5,567.90 on the National Stock Exchange, up 1.2%. End
Edited by Rajeev Pai
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