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Alembic Pharma Earnings Call Highlights Jun-21 QuarterFinancial Highlights • Revenue from operations made a slight decline of 1% YOY & rise of 3.5% QOQ and stood at 1326 crores • EBITDA took a major hit with a decline of 39% YOY & 29% QOQ and stood at 254 crores • EBITDA margin also stood at 19% declining 12% YOY & 9% QOQ • PAT got almost halved YOY and declined by 45% YOY and stood at 165 crores, also declining by 34% • PAT margin also followed the same path and stood at 12%, declining by 10% YOY & 7% QOQ • R&D Expenses as a percent of sale stood at 167 crores with 13% of sales being contributed to R&D, with an increment of 2% YOY and an equivalent decline QOQ • Net debt to Equity stood at 0.04 Business Highlights • Revenue Mix: Generics formulations contributed 43% of revenue, branded formulations contributed 36% of revenue & 21% of revenue came from API • US Generics business contributed 369 crores declining 38% YOY from 596 crores. 5-year CAGR stands currently at 24% • EX US Generics sales revenue stood at 197 crores with an increment of 13% YOY from 175 crores. 5-year CAGR currently stands at 25% • API Revenue also contributed 279 crores with an increment of 6% YOY from 264 crores. 5-year CAGR stands at 11% • Branded business contributed 480 crores with an increment of 57% YOY from 342 crores. 5-year CAGR stands at 5% • Out of 43% generics business,28% came from US & 15% from other than US. • India contributed 36% of total revenue with 18% coming from specialty formulations,14% came from Acute Formulations, & 4% from VET API • US Generic: Q1 FY22 :3 ANDA Filings, 5 Final Approvals,2 Products launched in Q1FY22, 6 products are on partner label • Currently Company’s Market share is 1.4% of Indian Pharma space • Company has made an investment of 124 crores in Q1 FY 2022 • Company has withdrawn its EPS guidance of Rs 50 for the year due to softness in US business & additional competition & price erosions as well. Delay in US FDA inspections have also contributed to the same. • Company is still bullish for the US market in long term with a strong conviction • Company is expecting around 15 products in current year • As per the company market share gains will be reflective in Q2 & Q3 • As per the company capex will take 5-7 years for sales to reach peak in US • Generics business surrounds much of uncertainty • As per the company, sector sales to fixed assets ratio is 1.5 to 2 times & company plans to achieve the same in long term • Majority of other expenses in profit & loss account (415 crores) are from domestic markets & these numbers will stay with a volatility up & down of around 10% • As per the company US market is still a very lucrative market to make money with future opportunities to be explored with supply chain management & management • As per the company Indian market is still opening up & normalcy is returning to the market • Prices in US market have declined in Sartan due to various constraints & also other molecules have taken the brunt of pricing competition & majority of products have suffered price erosion • Company expects R&D spend to be around 650 to 700 crores for the full year FY 2022 • Alembic Pharma is expecting 5-10% growth in API business in India

Alembic Pharma Conference Call Highlights Q1 FY22

Published on 29 July 2021 Views 0 Comments 0
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