Alkem Laboratories on Friday released its financial results for the first quarter ending June 30, 2024. For Q1FY25, Alkem reported a total revenue of Rs 3031.8 crore, marking a 2.2% year-over-year increase. Revenue from India was Rs 2022.3 crore, reflecting a 6.4% growth, while international sales stood at Rs 967.7 crore, showing a 4.6% decline. Net profit, after accounting for minority interest, stood at Rs 545.2 crore, up 90.1% year-over-year.
Earnings before interest, tax, depreciation, and amortization (EBITDA) reached Rs 608.6 crore, achieving an EBITDA margin of 20.1%, up from 13.1% in Q1FY24. The EBITDA grew by 56.4% compared to the previous year. Research and development expenses for the quarter were Rs 125.7 crore, maintaining the same percentage of total revenue (4.1%) as in Q1FY24.
According to IQVIA data, Alkem’s growth of 8.4% in the Indian Pharmaceutical Market (IPM) was slightly below the market’s overall growth of 8.7% for the quarter.
In Q1FY25, Alkem Laboratories’ India sales grew by 6.4% year-over-year to Rs 2022.3 crore, up from Rs 1900.7 crore in Q1FY24. The company achieved an 8.4% growth in the Indian Pharmaceutical Market (IPM), slightly below the market’s 8.7% growth.
Alkem outperformed the IPM in antidiabetic, Neuro/CNS, gastro-intestinal, dermatology, and VMN therapies, with improved rankings in Neuro/CNS and Respiratory therapies.
The company launched three new products domestically during the quarter. Notably, Uprise D3 has ascended to the Top 100 brands in the IPM, a notable rise from the Top 300 in under four years.
In Q1FY25, Alkem’s international sales fell by 4.6% year-over-year to Rs 967.7 crore. US sales declined by 7.7% YoY to Rs 641.6 crore but rose 2.8% sequentially. Sales in other international markets grew by 2.2% YoY to Rs 326.1 crore and 14.2% QoQ.
Dr. Vikas Gupta, CEO of Alkem, said, “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. 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 our stronghold, and we expect to build on it by furthering the growth of our large brands and bridging portfolio gaps. Simultaneously, we are also focusing on growing our business in emerging markets. During the quarter, an important development was the successful resolution of US FDA’s Form 483 at the Baddi facility. At Alkem, we remain steadfast to prioritising quality and regulatory compliance.”
Alkem will host a conference call for investors and analysts today, August 9, 2024, from 5:00 pm to 6:00 pm to discuss the Q1FY25 financial results.
