Alkem Laboratories reported a significant rise in consolidated net profit, reaching Rs 293 crore for the Q4 Results of the March 2024 quarter, up from Rs 71 crore in the same period of the previous fiscal year.
This substantial increase was influenced by a deferred tax derecognition of Rs 120 crore that impacted the fourth quarter profit of FY23. Adjusted for this item, the profit growth for Q4 FY24 would have been 54%.
Revenue from operations for the quarter stood at Rs 2,936 crore, slightly higher than the Rs 2,903 crore recorded in the year-ago period. For the fiscal year ending March 31, 2024, net profit surged to Rs 1,796 crore from Rs 984 crore in FY23, with revenue climbing to Rs 12,667 crore from Rs 11,599 crore in the previous fiscal year.
CEO Vikas Gupta attributed the improved performance to enhanced gross margins driven by lower raw material costs and reduced price erosion in the US market. The company’s EBITDA for the quarter was Rs 402 crore, marking a 13.8% increase year-on-year. However, domestic sales for Q4 FY24 were Rs 1,972.4 crore, a 1.9% decline year-on-year, while international sales dropped 6.1% to Rs 909.6 crore. For the full fiscal year, domestic sales fell 5.4% to Rs 8,433.7 crore, and international sales decreased 16.4% to Rs 4,002.4 crore.
Despite these challenges, Alkem’s US sales for Q4 FY24 grew by 5.5% to Rs 624.1 crore, and other international markets saw a 7.6% increase to Rs 285.5 crore. The company’s R&D expenses for the quarter were Rs 175.7 crore, representing 6% of total revenue.
Alkem’s board recommended a final dividend of Rs 5 per share for FY24, with a record date of August 10, 2024, and payment beginning on September 4, 2024. Shares of Alkem Laboratories closed 0.93% higher at Rs 5,265.10 on the BSE on Wednesday.
