Earnings Review
Alkem Lab's PAT growth slowest in 7 qtrs on weak intl sales
This story was originally published at 17:25 IST on 7 February 2025
Register to read our real-time news.Informist, Friday, Feb. 7, 2025
Please click here to read all liners published on this story
--Alkem Labs Oct-Dec consol PAT INR 6.26 bln vs INR 5.95 bln year ago
--Analysts saw Alkem Labs Oct-Dec consol net profit INR 5.92 bln
--Alkem Labs Oct-Dec consol revenue INR 33.74 bln vs INR 33.24 bln year ago
--Alkem Labs to pay INR 37 per share interim dividend
--Alkem Labs Apr-Dec consol PAT INR 18.60 bln vs INR 15.02 bln year ago
--Alkem Labs Apr-Dec consol revenue INR 98.21 bln vs INR 97.32 bln year ago
--Alkem Labs Oct-Dec consol EBITDA INR 7.59 bln, up 7.3% on year
--Alkem Labs Oct-Dec consol EBITDA margin 22.5% vs 21.3% year ago
--Alkem Labs Oct-Dec India sales INR 23.65 bln, up 5.9% on year
--Alkem Labs Oct-Dec intl sales INR 9.61 bln, down 6.2% on year
--Alkem Labs Oct-Dec R&D expenses INR 1.31 bln vs INR 1.11 bln year ago
--Alkem Labs Oct-Dec US sales INR 6.34 bln, down 7.3% on year
--Alkem Labs Oct-Dec gross margin 64.3% vs 60.8% year ago
--Alkem Labs Oct-Dec anti-infective segment sales up 2% on yr
--Alkem Labs Oct-Dec gastro-intestinal segment sales up 9.3% on yr
--Alkem Labs Oct-Dec analgesics segment sales up 5% on year
--Alkem Labs Oct-Dec gynaec segment sales up 5.4% on yr
--Alkem Labs Oct-Dec urology segment sales up 18.5% on yr
By Alina Geogy
MUMBAI – A decline in sales in international markets and higher expenditure led pharmaceutical major Alkem Laboratories Ltd. to post its slowest growth in net profit in seven quarters for the December quarter. Yet, it managed to beat the Street's expectations for the bottom-line print, aided by healthy on-year sales growth in its domestic business.
The consolidated net profit of Alkem Laboratories for Oct-Dec rose 5.2% on year to INR 6.26 billion, which was higher than analysts' expectations of INR 5.92 billion. This 5.2% on-year rise is the slowest pace of growth since the June quarter of 2023.
The drugmaker's revenue from international markets fell 6.2% on year to INR 9.61 billion for the December quarter. Its revenue from the US market fell 7.3% on year to INR 6.34 billion. The weakness in international sales was slightly offset by its domestic sales in the December quarter, which rose nearly 6% on year to INR 23.65 billion. "Within the domestic market, our focus is on expanding the presence of our flagship brands and strategically enhancing our portfolio," Vikas Gupta, chief executive officer, was quoted as saying in a press release.
The company's consolidated revenue for the December quarter rose 1.5% on year to INR 33.74 billion. In the September quarter, the company had reported an on-year decline in its top line.
The company's total expenditure for Oct-Dec grew almost 1% on year to INR 27.36 billion. Cost of materials, the largest part of total expenditure, rose over 10% on year to INR 9.24 billion. Alkem Laboratories spent INR 1.31 billion on research and development in the December quarter, slightly higher than INR 1.11 billion a year ago.
The company's consolidated earnings before interest, taxes, depreciation, and amortisation in the December quarter was INR 7.59 billion, up 7.3% on year. Its consolidated EBITDA margin in Oct-Dec rose to 22.5% from 21.3% a year ago. Alkem Laboratories' gross margin rose to 64.3% in the December quarter from 60.8% a year ago. "By concentrating on higher-margin offerings, better aligning with market needs, and implementing cost-saving strategies to reduce inefficiencies, we are seeing growth in our EBITDA margins," Gupta said.
In the nine months ended Dec. 31, the company's consolidated net profit rose to INR 18.60 billion from INR 15.02 billion a year ago. Its consolidated revenue for Apr-Dec rose to INR 98.21 billion from INR 97.32 billion a year ago. Alkem Laboratories announced that it would pay an interim dividend of INR 37 per share.
Alkem Laboratories said performance across its key therapeutic segments for the December quarter was mixed. Sales from the anti-infectives segment, in which the company is a market leader, rose 2% from a year ago. Sales from the gastrointestinal segment rose 9.3% from a year ago, and sales from the analgesics segment and gynaecological segment both grew around 5% on year. Sales from the urology segment rose 18.5% from a year ago in the December quarter.
According to clinical research firm IQVIA's secondary sales audit data, Alkem Laboratories registered on-year growth of 6% for Oct-Dec compared to the Indian pharmaceutical market's 7.2% growth. The company said it outperformed the Indian pharmaceutical market in seven therapies--neurological, anti-diabetic, gastrointestinal, gynaecological, respiratory, urological, and vitamins, minerals, and nutrients.
Shares of Alkem Laboratories closed at INR 5,151.35, down 2%, on the National Stock Exchange Friday. The stock, which was slightly positive prior to the earnings, fell as much as 4.2% to an intraday low of INR 5,036 after the company announced its results for the December quarter. End
Edited by Rajeev Pai
For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.
Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.
Informist Media Tel +91 (22) 6985-4000
Send comments to feedback@informistmedia.com
© Informist Media Pvt. Ltd. 2025. All rights reserved.
To read more please subscribe
Share this Story:
