Alkem Lab Q1 PAT slumps 72% YoY to Rs 131 cr

Alkem Laboratories' consolidated net profit declined 72.62% to Rs 131.45 crore on 5.7% decline in revenue from operations to Rs 2,576.38 crore in Q1 FY23 over Q1 FY22.

Profit before tax slumped 72.68% year on year to Rs 151.89 crore in the quarter ended 30 June 2022.

The company's India sales were at Rs 1,781.5 crore (up 6.7% YoY) while International sales were at Rs 760.4 crore (down 3.8% YoY) in the first quarter.

EBITDA declined 65.7% YoY to Rs 203.2 crore in Q1 FY23. EBITDA margin was at 7.9% as on 30 June 2022 as against 21.7% as on 30 June 2021.

R&D expenses for the quarter was Rs 132 crore, or 5.1% of total revenue from operations compared to Rs 118.3 crore in Q1 FY22 at 4.3% of total revenue from operations.

During the quarter, the company filed 3 abbreviated new drug applications (ANDAs) with the US FDA and received 4 approvals (including 1 tentative approval).

As on 30 June 2022, the company filed a total of 164 ANDAs and 2 new drug applications (NDA) with the USFDA. Of these, it has received approvals for 124 ANDAs (including 13 tentative approvals) and 2 NDAs.

Sandeep Singh, managing director of Alkem, said, We are starting the new fiscal year on a positive note, with yet another market beating performance in domestic market adjusting for huge base of last year [CAGR of 13.4%, Q1FY20-Q1FY23]. However, headwinds from price erosion in US market and inflationary environment has impacted margins for the quarter. As we move ahead, we remain focused on our journey of expanding margins through productivity improvement and various cost optimization initiatives across the organization. Our biosimilar franchise is shaping up well and we are looking forward to some exciting launches going ahead.

Alkem is a pharmaceutical company with global operations. The company produces branded generics, generic drugs, active pharmaceutical ingredients (APIs) and nutraceuticals, which it markets in India and International markets.

The scrip fell 0.47% to currently trade at Rs 3,137.95 on the BSE.

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