Alkem Laboratories Ltd, a leading pharmaceutical company, announced a remarkable 76.83% increase in its consolidated net profit for the second quarter ended September 30. The company reported a net profit of Rs 614.89 crore, compared to Rs 347.72 crore during the same period last year. This growth can be attributed to lower raw material costs and a reduced intensity of price erosion in the US market.
According to the regulatory filing, Alkem Laboratories also witnessed a growth in its consolidated revenue from operations, which stood at Rs 3,440.17 crore, up from Rs 3,079.37 crore in the previous year.
While expenses for the quarter increased slightly to Rs 2,797.66 crore, compared to Rs 2,727.71 crore in the same period last year, the company’s Managing Director, Sandeep Singh, expressed satisfaction with the overall performance. He stated that the second quarter builds on the momentum gained in the first quarter, with substantial gross margin enhancements due to lower raw material costs and lower intensity of price erosion in the US market. Singh also highlighted increased operating leverage, resulting in improved EBITDA margins.
Despite subdued domestic growth due to sporadic monsoon conditions, Singh remains optimistic and anticipates continued momentum in the coming quarter. However, he noted that the company observed significant traction in the domestic market during September.
In terms of India sales, Alkem Laboratories achieved a 5% increase to Rs 2,327.8 crore in the second quarter, compared to Rs 2,216.1 crore in Q2FY23. The company’s international business also performed well, with both the US and non-US markets showing robust growth. Singh emphasized the consistent success in this area, as evident in Q1 and continuing in the present quarter.
Notably, Alkem Laboratories saw a remarkable 27.1% growth in its international sales, reaching Rs 1,054.2 crore in the second quarter, compared to Rs 829.1 crore in the corresponding period last year.
Singh highlighted the impressive performance of the company’s biosimilars portfolio, particularly with the latest addition of Enzene’s product, Ranibizumab. He stated that the product suite now consists of seven biosimilars, all of which are witnessing significant traction in the domestic market.
In conclusion, Alkem Laboratories is determined to maintain its improved operational performance and build upon its recent successes, as emphasized by Singh. The company’s focus on cost optimization and market expansion continues to contribute to its overall growth and success in the pharmaceutical industry.
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