Earnings | Alkem Laboratories Ltd.(NSE:ALKEM): Q3FY23 Results Out; Total Income rise 15% YoY

Alkem Laboratories Ltd.(NSE:ALKEM) is a pharmaceutical company based in India that specializes in the manufacturing and marketing of generic and branded drugs, including formulations, active pharmaceutical ingredients (APIs), and nutraceuticals. The company was founded in 1973 and has since grown into one of the top pharmaceutical companies in India, with a presence in over 50 countries worldwide. Alkem Laboratories is known for its focus on research and development, which has enabled the company to introduce several innovative products in the market. The company’s product portfolio covers a broad range of therapeutic areas, including cardiology, dermatology, gastroenterology, neurology, and more.

Alkem Laboratories Ltd. has announced its Q3FY23 results, reporting a total revenue from operations of Rs 30,409 million, a YoY growth of 16.1%. India sales were Rs 19,922 million, a YoY growth of 9.7%, while international sales were Rs 9,928 million, a YoY growth of 28.8%. The company’s EBITDA for the quarter was Rs 5,990 million, resulting in an EBITDA margin of 19.7%, up from 19.0% in Q3FY22, with EBITDA growing 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. However, the net profit (after minority interest) was Rs 4,547 million, a YoY decline of 13.5%.

For the 9MFY23 period, total revenue from operations was Rs 86,967 million, a YoY growth of 6.7%. India sales were Rs 59,898 million, a YoY growth of 5.3%, while international sales were Rs 25,823 million, a YoY growth of 9.1%. The company’s EBITDA for the 9MFY23 was Rs 12,562 million, resulting in an EBITDA margin of 14.4%, down from 21.1% in 9MFY22, with EBITDA declining by 26.8% YoY. R&D expenses for 9MFY23 were 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, and the net profit (after minority interest) was Rs 9,132 million, a 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.”

Overall, Alkem Laboratories Ltd. has reported a mixed performance, with growth in total revenue and EBITDA for the quarter, but a decline in net profit. The company has also seen a decline in EBITDA and net profit for the 9MFY23 period. However, the company’s focus on R&D is evident with consistent investments in the area.