BackAlkem posts a three-fold increase in Q4 net profit to ₹293.56 crore
Alkem recorded international sales of ₹909.6 crore, reflecting a 6.1% YoY growth driven by a 5.5% increase in the US market and a 7.6% rise in other international markets.
PremiumAlkem Laboratories, a homegrown multinational pharmaceutical manufacturer, reported on Wednesday a three-fold increase in its consolidated net profit for the fourth quarter of fiscal year 2024, driven by the derecognition of deferred tax during the same period last fiscal year.
Consolidated profit for Q4FY24 stood at ₹293.56 crore, compared to ₹70.98 crore in Q4FY23.
The company posted a modest year-on-year (YoY) revenue increase of 1.1% for the quarter, totalling ₹2,935.8 crore. However, its Indian sales saw a 1.9% YoY decline, amounting to ₹1,972.4 crore from ₹2,011.3 crore in Q3FY24, due to a sporadic season for its large Anti-infectives business, especially in eastern India.
Conversely, Alkem recorded international sales of ₹909.6 crore, reflecting a 6.1% YoY growth driven by a 5.5% increase in the US market and a 7.6% rise in other international markets.
According to IQVIA data, Alkem registered a 1.4% YoY growth for Q4FY24 against the 5.7% growth of the Indian Pharmaceutical Market (IPM). The company also achieved double-digit YoY growth in its anti-diabetic, cardiac, derma, and vitamins, minerals, and nutrients (VMN) portfolios, outperforming the IPM in these therapeutic segments.
Read This: Aurobindo Pharma has growth levers, but stock factors brighter picture
“Our focus has been to improve Ebitda (earnings before interest, tax, depreciation, and amortization) margin during the year on the back of benefits through various cost-control initiatives being implemented along with favourable API prices," said Vikas Gupta, chief executive, Alkem. “Q4FY24 builds on the momentum from previous quarters with significant gross margin enhancements backed by lower raw material costs and reduced price erosion in the US. Lower operational expenses across our manufacturing facilities and R&D also aided the Ebitda margin."
“Our biosimilars and international business have delivered strong growth across geographies. Our anti-diabetic portfolio continues to outperform the market," he added.
Ebitda for the fourth quarter stood at ₹402 crore, a 13.8% YoY increase, resulting in a margin of 13.7%. R&D expenses for the quarter were ₹175.7 crore, or 6.0% of total revenue from operations.
As of 31 March 2024, the company held net cash of ₹35,500 crore.
For the full year ended 31 March 2024, Alkem reported a consolidated profit of ₹1,795.8 crore, an 82.5% YoY rise, while revenue from operations stood at ₹12,667.6 crore, a 9.2% YoY increase.
The board of directors at Alkem Laboratories has announced a final dividend of ₹5 apiece of ₹2 each for FY24.
Also Read | Pharma companies prioritizing technology for growth: ZS CEO
3.6 Crore Indians visited in a single day choosing us as India's undisputed platform for General Election Results. Explore the latest updates here!
