Alkem Laboratories Q1 Results: Profit Rises 91%, Beats Estimates

Alkem Laboratories Ltd.'s consolidated net profit rose 91% in the first quarter of fiscal 2025 and surpassed analysts' estimates.

The company posted a net profit of Rs 550 crore in the quarter ended June in comparison with Rs 288 crore in the year-ago period, according to an exchange filing on Friday. Analysts tracked by Bloomberg had estimated a profit of Rs 432 crore.

• Revenue up 2.2% at Rs 3,032 crore versus Rs 2,968 crore (Bloomberg estimate: Rs 3,214 crore)

• Ebitda up 56% at Rs 609 crore versus Rs 389 crore (Bloomberg estimate: Rs 531 crore)

• Margin at 20.1% versus 13.1% (Bloomberg estimate: 16.5%)

• Net profit up 91% at Rs 550 crore versus Rs 288 crore (Bloomberg estimate: Rs 432 crore)

• In Q1 FY25, the company's India sales increased 6% year on year, recording sales of Rs 2,022.3 crore compared to Rs 1,900 crore in Q1 FY24.

• The company outperformed the India pharma market in antidiabetic, neuro/CNS, gastrointestinal, dermatology, and VMN therapies, and its ranking has improved in neuro/CNS and respiratory therapies.

• During the quarter, the company launched three new products in the domestic market.

In Q1 FY25, the company's international sales declined 4.6% year-on-year, recording sales of Rs 967.7 crore compared to Rs 1,014.6 crore in Q1 FY24. US sales for Q1 FY25 stood at Rs 641.6 crore, witnessing a decline of 7.7% YoY and a growth of 2.8% on a quarter-on-quarter basis.

Other international markets sales for the quarter were Rs 326.1 crore, recording year-on-year growth of 2.2% and 14.2% on a quarter-on-quarter basis.

"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," Chief Executive Officer Vikas Gupta said. "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 Alkem's stronghold and the company expects to build on it by furthering the growth of its large brands and bridging portfolio gaps. Simultaneously, it is also focussing on growing the business in emerging markets, according to Gupta.

"During the quarter, an important development was the successful resolution of the US FDA’s Form 483 at the Baddi facility. At Alkem, we remain steadfast in prioritising quality and regulatory compliance," he added.

Shares of Alkem closed 2.84% higher at Rs 5,849 apiece on the BSE, compared with a 1.04% advance in the benchmark Nifty.