Icon times
Alkem Laboratories Q1FY22 Conference Call Highlights

Alkem Laboratories Q1FY22 Conference Call Highlights

Published on 09 August 2021 Views 44 Comments 0

Financial Highlights

  • Revenue from Operations stood at 2731 crores from 2003 crores a 36% rise YOY & 25% rise QOQ
  • Expenses stood at 2139 crores from 1470 crores rising 46% YOY & a 13% QOQ
  • EBITDA stood at 640 crores from 577 crores rising 11% YOY & 90% QOQ
  • EBITDA Margin stood at 23% from 29% YOY declining 6% YOY & rising 8% QOQ due to higher cost of raw materials YOY & inventory net realizable value provisioning as well with around 38 crores being a one-off
  • PAT stood at 468 crores from 422 crores rising 11%YOY & 95% QOQ
  • PAT margin stood at 17% from 21%, a decline of 4% YOY & a rise of 6% QOQ due to higher employee cost & the company increasing its basic pay from 37% to 42%  of CTC & higher another expense cost.
  • R&D expenses in the quarter were ₹ 120 crores at 4.3% of revenue from operations with around 12% to 14% spent on biosimilars
  • Healthy Balance Sheet with net cash of ₹ 980 crores as of June 30, 2021
  • Free cash flow stood at 450 crores as of 30th June 2021

Business Highlights

  • India sales contributed 70.7% to total sales in Q1FY22 and stood at 1909 crores from 1155 crores, a growth of 65%
  • In Q1FY22, the Company’s secondary sales grew by 61.1% YoY compared to the Indian Pharma Market growth of 39.2% YoY
  • Growth was mainly led by acute therapies like anti-infectives, vitamins/minerals/nutrients, gastrointestinal and pain management segment
  • The Company also outperformed in chronic therapies like neuro / CNS, cardiac, anti-diabetes, and derma during the quarter
  • Company’s Trade Generic business delivered a robust growth during the quarter
  • Secondary Sales growth: Acute Therapies YOY Growth: Anti Infectives: 88.5%, Gastro-Intestinal: 32.8%, Pain: 43.7%, Vitamins: 86.6%
  • Chronic Therapies: Anti Diabetic: 34%, Neuro: 39%, Cardiac: 25%, Derma: 51%
  • US sales contributed 22.4% to total sales in Q1FY22 and stood at 604 crores a decline of 9% YOY
  • During the quarter, the US business registered sequential growth of 11.2% over Q4FY21
  • In Q1FY22, the Company filed 2 ANDAs with the US FDA and received 5 final approvals
  • The company has also signed a few important licensing and supply agreements in the biotech space worth 100 Crores.
  • As on June 30, 2021, the Company has filed a total of 154 ANDAs (including 2 NDAs) with the US FDA and has received 114 approvals (including 15 tentative approvals and 2 NDAs)
  • ST Louis Formulations Facility has received 2 observations & the company has sent a detailed response regarding the same
  • The US FDA had also conducted a remote and virtual Bio-Analytical inspection of the Company’s Bioequivalence Center located at Taloja, Maharashtra from 26th to 28th July 2021. At the end of the inspection, no Form 483 was issued
  • 15% to 16% growth guidance for the next two-three years driven largely by new launches in US markets is broadly maintained by the management
  • Other International Market sales contributed 6.9% to total sales in Q1FY22 and stood at 186 crores from 118 crores a rise of 56% YOY
  • The Company has a presence in Australia, Europe, South East Asia, Latin America, Africa, and CIS.  Key markets like Australia, Chile, the Philippines, Kazakhstan, and UK registered healthy growth during the quarter
  • The company has made an overall investment of 650 crores  in Biosimilars
  • The company has experienced higher selling & distribution cost with particularly high freight cost for international business
  • Price deflation has been experienced by the company in the US with particularly high deflation in Covid Products
  • The company has around 11000 MRs
  • The company currently as of now is not keen on Mergers & Acquisitions as per the management
Attachments
File Name
private article suscription area icon

You like to know more. We like that!

Please subscribe Model Portfolio Plan to get access of all premium model portfolio articles Only at Rs 7499/Year.

Please login to view this free article.

This blog is available only for logged in users, please register and get access to view this article.

LATEST UPDATE

premium Premium
free Free
Read More

REPORTS


Chat on WhatsApp
Caret UP Arrow
InvestYadnya Support
Typically replies in minutes
InvestYadnya Support
Hi there
Welcome to InvestYadnya.
We are available to assist you on WhatsApp.
Please click on the button below to chat with us.
(10 AM to 7 PM IST)
16:10
Chat with InvestYadnya