Conference Call with Alkem Laboratories Management and Analysts on Q3FY23 Performance and Outlook. Listen to the full earnings transcript.
Alkem Laboratories announced Q3FY23 results: Q3FY23: Total revenue from operations was Rs 30,409 million, YoY growth of 16.1% India sales were Rs 19,922 million, YoY growth of 9.7% International sales were Rs 9,928 million, YoY growth of 28.8% EBITDA was Rs 5,990 million, resulting in an EBITDA margin of 19.7% vs 19.0% in Q3FY22. EBITDA grew by 20.2% YoY R&D; expenses for the quarter were Rs 1,297 million, or 4.3% of total revenue from operations compared to Rs 1,449 million in Q3FY22 at 5.5% of total revenue from operations. Profit before tax (PBT) was Rs 5,389 million, a growth of 16.2% compared to Q3FY22 Net profit (after minority interest) was Rs 4,547 million, YoY decline of 13.5% 9MFY23: Total revenue from operations was Rs 86,967 million, YoY growth of 6.7% India sales were Rs 59,898 million, YoY growth of 5.3% International sales were Rs 25,823 million, YoY growth of 9.1% EBITDA) was Rs 12,562 million, resulting in EBITDA margin of 14.4% vs 21.1% in 9MFY23. EBITDA declined by 26.8% YoY R&D; expenses for 9MFY23 was Rs 3,922 million, or 4.5% of total revenue from operations, compared to Rs 4,039 million in 9MFY22 at 5.0% of total revenue from operations. Profit before tax (PBT) was Rs 10,931 million, a decline of 31.7% compared to 9MFY22 Net profit (after minority interest) was Rs 9,132 million, YoY decline of 40.6% Commenting on the results, Sandeep Singh, Managing Director, Alkem said, “Building on the pace of Q1 and Q2, our domestic branded franchise delivered strong growth in Q3, beating market by more than 600 basis points [16.7% Alkem Vs 10.0% IPM]. After two quarters of subdued performance, our US business posted strong growth in Q3 on the back of a good season. In a recent development, our biosimilar franchise, Enzene Biosciences, raised about Rs 161 crore and partnered with Eight Roads Ventures and F-Prime Capital. This further instils our confidence and reaffirms our journey towards building a leading global biologics company that leverages innovation to enhance global health. During the quarter, the company generated healthy cash flows in excess of Rs 5 billion, which has helped us further strengthen our balance sheet with strong net cash position of Rs 19 billion.” Result PDF
Pharmaceutical company Alkem Laboratories announced Q2FY23 results: Q2FY23: Total revenue from operations was Rs 30,793 million, with YoY growth of 10.0% India sales were Rs 22,161 million, with YoY growth of 13.0% International sales were Rs 8,291 million, with YoY growth of 3.0% Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) was Rs 4,539 million, resulting in EBITDA margins of 14.7% vs 22.3% in Q2FY22. EBITDA declined by 27.3% YoY R&D; expenses for the quarter were Rs 1,305 million, or 4.2% of total revenue from operations compared to Rs 1,407 million in Q2FY22 at 5.0% of total revenue from operations Profit before tax (PBT) was Rs 4,023 million, a decline of 30.8% compared to Q2FY22 Net profit (after Minority Interest) was Rs 3,308 million, a YoY decline of 39.2% H1FY23: Total revenue from operations was Rs 56,558 million, with YoY growth of 2.2% India sales were Rs 39,976 million, with YoY growth of 3.3% International sales were Rs 15,895 million, a YoY decline of 0.4% EBITDA was Rs 6,572 million, resulting in an EBITDA margin of 11.6% vs 22.0% in H1FY23. EBITDA declined by 46.0% YoY R&D; expenses for H1FY23 were Rs 2,625 million, or 4.6% of total revenue from operations compared to Rs 2,590 million in H1FY22 at 4.7% of total revenue from operations Profit before tax (PBT) was Rs 5,542 million, a decline of 51.3% compared to H1FY22 Net profit (after Minority Interest) was Rs 4,585 million, a YoY decline of 54.7% Sandeep Singh, Managing Director, Alkem, said, “After a market-beating performance in Q1, our domestic franchise has significantly outperformed IPM even in Q2. We increased market share across all acute therapies, anti-diabetic and urology during this quarter. While our US business continues to face significant pricing pressure, our other international business is growing at a healthy pace. Various cost optimisation initiatives are underway which should help in building sustainable and profitable business and also drive margin expansion. We are receiving encouraging response for our biosimilar and CDMO franchise." Result PDF