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Business News/ Companies / Company Results/  Alkem posts a three-fold increase in Q4 net profit to 293.56 crore
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Alkem 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.

Alkem Lab a 1.4% YoY growth for Q4FY24 against the 5.7% growth of the Indian Pharmaceutical Market.Premium
Alkem Lab a 1.4% YoY growth for Q4FY24 against the 5.7% growth of the Indian Pharmaceutical Market.

Alkem 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.

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“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

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ABOUT THE AUTHOR
Naman Suri
Naman is a skilled business journalist who excels in breaking down complex financial details. He specializes in the corporate sector, providing thorough coverage of the pharmaceutical industry, the dynamic field of sports business, and the fascinating area of white-collar crime. Naman has a knack for making sense of numbers and presenting them in an understandable way.
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Published: 29 May 2024, 07:02 PM IST
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