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Alkem Labs profit tanks on high base, India business down 7%

On a sequential basis, numbers were positive as Alkem recorded 21.5 percent increase in profit and 3.7 percent rise in revenue from operations

August 05, 2022 / 02:39 PM IST
 
 
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Alkem Laboratories on August 5 recorded a 73 percent decline in consolidated profit at Rs 131.5 crore for the quarter ended June due to a high base last year.

Consolidated revenue fell 5.7 percent to Rs 2,576.4 crore with India business declining 6.7 percent to Rs 1,781.5 crore and international sales down 3.8 percent to Rs 760.4 crore.

US sales came in at Rs 556.5 crore, down 7.9 percent, but other international markets business increased 9.6 percent to Rs 203.9 crore.

On a sequential basis, numbers were positive as Alkem recorded 21.5 percent increase in profit and 3.7 percent rise in revenue from operations.

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The research & development expenses came in at Rs 132 crore, which was 5.1 percent of total revenue from operations, compared to Rs 118.3 crore (4.3 percent of revenue) a year ago.

"We are starting the new fiscal year on a positive note, with yet another market-beating performance in the domestic market adjusting for huge base of last year. However, headwinds from price erosion in the US market and inflationary environment have impacted margins," managing director Sandeep Singh said.

He further said the company remains focused on its journey of expanding margins through productivity improvement and various cost optimisation initiatives across the organisation.

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Core profit fell 65.7 percent year on year to Rs 203.24 crore with margin contracting 1,380 basis points to 7.9 percent.

As on June 2022, Alkem filed a total of 164 abbreviated new drug applications and two new drug applications with the US. Of these, it has received approvals for 124 ANDAs (including 13 tentative approvals) and two NDAs.

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The stock was trading at Rs 3,115 on the BSE, down 1.2 percent, at 14:14 hours IST.
Sunil Shankar Matkar
first published: Aug 5, 2022 02:39 pm
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