Alkem Laboratories Ltd, a pharmaceutical company, has reported a significant increase in its consolidated net profit for the second quarter ended September 30. The company’s net profit rose 76.83%, reaching Rs 614.89 crore. This growth can be attributed to lower raw material costs and a decrease in price erosion in the US market.
In the same quarter of the previous fiscal year, Alkem Laboratories posted a net profit of Rs 347.72 crore. The company’s consolidated revenue from operations also saw a positive trend, standing at Rs 3,440.17 crore compared to Rs 3,079.37 crore in the year-ago period.
Despite a slight increase in total expenses, from Rs 2,727.71 crore to Rs 2,797.66 crore, Alkem Laboratories managed to improve its performance. This was achieved through significant gross margin enhancements, lower raw material costs, decreased price erosion in the US market, and increased operating leverage, resulting in improved EBITDA margins.
Sandeep Singh, the Managing Director of Alkem Laboratories, expressed satisfaction with the company’s performance, stating that the second quarter builds on the momentum gained in the first quarter. Singh emphasized the positive impact of lower raw material costs and reduced price erosion in the US market on the company’s improved gross margin and EBITDA margins.
While domestic growth remained subdued due to sporadic monsoon conditions, September showed a significant uptick in the domestic market. Alkem Laboratories expects this momentum to continue in the upcoming quarter.
The company’s India sales increased 5% to Rs 2,327.8 crore during the second quarter. In terms of international business, both the US and non-US markets displayed strong performance and continued to flourish. Alkem reported a growth of 27.1% in international sales, reaching Rs 1,054.2 crore.
Singh highlighted the impressive performance of Alkem’s biosimilars portfolio, with the addition of Enzene’s latest product, Ranibizumab. The company currently offers a suite of seven biosimilar products and is witnessing significant traction in the domestic biosimilars market.
In conclusion, Alkem Laboratories is committed to sustaining its operational performance and building on its recent successes. With favorable market conditions and a strong product portfolio, the company aims to maintain its growth trajectory in the pharmaceutical industry.