Alkem Laboratories Q4 Results: Profit Jumps 4.4x But Misses Estimates
Alkem Laboratories Ltd.'s consolidated net profit increased 4.4x in the fourth quarter of financial year 2024, and it missed analysts' estimates.
The company posted a profit of Rs 304 crore in the quarter-ended March, in comparison with Rs 68 crore in the year-ago period, according to an exchange filing on Wednesday. Analysts tracked by Bloomberg had estimated a profit of Rs 350.21 crore.
Company had an exceptional item of Rs 119.7 crore. PAT for Q4FY23 was impacted on account of derecognition of deferred tax of Rs 119.7 crore. Adjusted for the above item, PAT growth for Q4FY24 would have been 54%.
Alkem Laboratories Q4 FY24 Highlights (Consolidated, YoY)
Revenue up 1.1% at Rs 2,936 crore vs Rs 2,903 crore (Bloomberg Estimate: Rs 3194.80 crore)
Ebitda up 13.8% at Rs 402 crore vs Rs 353 crore (Bloomberg Estimate: Rs 441.96 crore)
Margin at 13.7% vs 12.2% (Bloomberg Estimate: 13.80%)
Net profit at up 4.4x Rs 304 crore vs Rs 68 crore (Bloomberg Estimate: Rs 350.21 crore)
US Business Update
During Q4FY24, the US business grew by 5.5% and in FY24 it grew by 10.2%.
Overall contribution of US sales to total sales was 21.7% in Q4FY24 and in FY24 as well.
During Q4FY24, the Company has filed 4 ANDA and has received two approvals, including one tentative approval, from the USFDA.
For FY24 , we have filed eight ANDA with the USFDA and have received 19 approvals, including three tentative approvals.
India Business Update
India business saw 1.9% YoY decline in Q4FY24 at Rs 1,972.4 crore
Contribution of domestic sales to total sales in Q4FY24 was 68.4% and for FY24 was 67.8%.
During the year, there has been a sporadic season for company's large business, i.e. Anti-infectives especially in eastern India, so impact on Alkem is higher than industry.
company outperformed the IPM(Indian Pharma market) growth in Anti-diabetic, Derma, and VMN therapies in Q4FY24 and in FY24 in Anti-diabetic, Derma, GI and VMN therapies.
Other International Businesses
Saw growth of 7.6% year on year at Rs 285.5 crore
Other International Market sales contributed 10% to total sales in Q4FY24 as well as in FY24.
For FY24, Non-US business has contributed significantly amidst launch of limited competition products in our key focus markets.
The Company has presence mainly in Latin America, Australia and Europe
All our major markets like Chile, UK and Germany have registered very strong growth during FY24.
Shares of company were trading 0.36% higher at Rs 5333.05 apiece on the NSE at 2:26 pm, as compared with a 0.62% decline in the benchmark Nifty 50.
