Alembic Pharmaceuticals reported a strong financial performance for the first quarter of the fiscal year 2024-25, with key metrics indicating growth in both net profit and revenue. The company’s net profit for the quarter ended June 30, 2024, increased by 12% year-on-year (YoY) to Rs. 135 crore, up from Rs. 120 crore during the same period in the previous year. This growth was primarily driven by robust sales in both the Indian and US markets.
Alembic Pharma’s first-quarter revenue of Rs. 1,462 crore increased by 5% year over year. EBITDA, or earnings before interest, tax, depreciation, and amortization, increased by 14% YoY to Rs. 239 crore, which was also a significant gain. The company’s EBITDA margins contracted by 540 basis points during the quarter, resulting in a 15.3% margin despite the gain in EBITDA. This suggests that even though the business is making more money, overall profitability may be being impacted by rising expenses or other financial strains.
Alembic Pharma’s revenue is still significantly influenced by the Indian market. In Q1FY25, the company’s branded business in India had a 9% YoY rise to Rs. 572 crore. Around 83% of the company’s business in India is made up of branded formulations, which saw a 7% YoY growth to Rs. 474 crore. Sales in specialty portfolios were a major factor in this growth, demonstrating Alembic’s attention to high-value pharmaceutical market areas.
Alembic Pharma holds the 20th position in the Indian pharmaceutical market, holding a 1.3% market share. Remarkably, the National List of Essential Medicines (NLEM), which governs these drugs’ prices, accounts for almost 15% of Alembic’s portfolio in India. In spite of the pricing restrictions, the business has continued to grow steadily in this market.
Alembic Pharma’s generics division achieved YoY increase of 18% in the US market, reaching Rs. 461 crore. With aspirations to introduce over 25 new items by FY25, the company debuted two new products in the first quarter. The business anticipates sustained growth in US sales, fueled by goods from recently opened plants and a robust backlog of upcoming releases.
Alembic Pharma’s generics division achieved YoY increase of 18% in the US market, reaching Rs. 461 crore. With aspirations to introduce over 25 new items by FY25, the company debuted two new products in the first quarter. The business anticipates sustained growth in US sales, fueled by goods from recently opened plants and a robust backlog of upcoming releases.Alembic Pharma’s export markets outside of the US showed a moderate 2% YoY growth outside of India and the US, bringing in Rs. 271 crore for the quarter. The company’s Animal Health division exceeded expectations, increasing by 23% year over year to Rs. 98 crore. A robust portfolio of brands that have outperformed in the market has been the main driver of this success.
Alembic Pharma’s export markets outside of the US showed a moderate 2% YoY growth outside of India and the US, bringing in Rs. 271 crore for the quarter. The company’s Animal Health division exceeded expectations, increasing by 23% year over year to Rs. 98 crore. A robust portfolio of brands that have outperformed in the market has been the main driver of this success.
Alembic Pharma is confident in its future growth possibilities. In order to fulfill the growing demand in the US and other export markets, the company has started expanding its oral solids segment’s capacity. In addition, the company’s plan to concentrate on specialist markets and introduce new goods is anticipated to fuel growth in the upcoming quarters.
Alembic Pharma’s Q1FY25 results show the company’s tenacity and capacity for expansion in a demanding commercial climate. The company is in a solid position to maintain its growth trajectory in both domestic and foreign markets thanks to significant investments in capacity expansion and a robust product pipeline.
SOURCE:
ETHEALTH WORLD
