Alkem Laboratories Q2 Results: Net Profit Increases 14%, Meets Estimates

Alkem Labs Ltd.'s consolidated net profit rose in the second quarter of the current financial year, meeting analysts' estimates.

The company's profit rose 14% to Rs 702 crore in the quarter-ended Sept. 30, 2024, according to an exchange filing on Wednesday. That compares with the Rs 698-crore consensus estimate of analysts tracked by Bloomberg.

Net profit growth is led by 2 times increase in other income at Rs 134 crore versus Rs 63 crore last year.

• Revenue down 0.7% at Rs 3,415 crore vs Rs 3,440 crore (Bloomberg estimate: Rs 3,628 crore).

• Ebitda up 0.9% at Rs 753 crore vs Rs 746 crore (Bloomberg estimate: Rs 780 crore).

• Margin at 22% vs 21.7% (Bloomberg estimate: 21.8%).

• Net Profit up 14% at Rs 702 crore vs Rs 615 crore (Bloomberg estimate: Rs 698 crore).

India sales for the quarter reached Rs 2,461 crore, reflecting a year-on-year growth of 5.7%. Domestic sales contributed 72.8% of total sales in the second quarter, up from 68.8% in the same period last year, showing an increased focus on the domestic market. According to IQVIA (SSA) data, the company registered a growth of 6.3% year-on-year during the July-September period, slightly below the Indian Pharmaceutical Market growth rate of 7.6%.

International sales amounted to Rs 918.1 crore, reflecting a year-on-year decline of 12.9%. The US market contributed 17.7% to total sales in second quarter, while sales from other international markets accounted for 9.5% of total sales. During the quarter, the company launched one new product in the US and received five approvals from the USFDA, including one tentative approval.

Shares of the company rose 0.7% at Rs 5,541.8 apiece as compared to 0.84% fall in Nifty 50 at 1:45 p.m.