Alkem Laboratories has posted satisfactory growth in top line as well as bottom line during the third quarter ended December 2016 despite challenging business environment, especially or the acute business which was impacted by demonetization, coupled with a weak anti-infective season.. Its consolidated net profit increased by 24.9 per cent to Rs.233 crore from Rs.187 crore in the corresponding quarter of last year. EBDITA also increased by 15.6 per cent to Rs.293 crore from Rs.254 crore. Its net sales moved up by 14.9 per cent to Rs.1,462 crore from Rs.1,272 crore. EPS improved to Rs.19.52 from Rs.15.63 in the last period.
Its domestic sales improved by 13.5 per cent to Rs.1,030 crore and international sales grew by 18.7 per cent to Rs.432 crore. Indian sales contributed 70.4 per cent to total sales. Its US sales increased by 30.1 per cent to Rs.339 crore and contributed 23.1 per cent to total sales. Alkem launched one new product during the quarter, taking the total to 5 new products launches in first nine months of 2016-17. Other international market contributed 6.4 per cent to its sales and sales in these markets amounted to Rs.94 crore.
Its R&D expenditure reached at Rs.85 crore and worked out to 5.7 per cent of sales. Though the company successfully closed the US FDA inspection at the Daman formulation facility, it received 3 observations for its Ankleshwar API facility which was inspected in December 2016.
The consolidated financial results includes the interim results of 14 subsidiaries and their total revenues was at Rs.104 crore and their net loss was at Rs.38 crore during the quarter.
Prabhat Agrawal, chief executive officer, said, “Q3FY17 has been a challenging quarter in terms of business environment, especially for the acute segment which was impacted by demonetization, coupled with a weak anti-infective season. Amidst this tough business environment, we are pleased to report a healthy and consistent growth without compromising on our margins. Our US business also contributed with strong revenue growth during the quarter driven mainly by market share gains. Further we successfully closed the US FDA inspection at our Daman facility. We look forward to carry this momentum ahead for the rest of the financial year.”
For the nine months period ended December 2016, Alkem's consolidated net sales increased by 17.9 per cent to Rs.4,540 crore from Rs.3,852 crore in the same period of last year. Its net profit improved by 15.3 per cent to Rs.755 crore from Rs.655 crore. EPS worked out to Rs.63.15 as against Rs.54.77 in the last period. R&D expenditure was at Rs.229 crore or 5 per cent of operating income. It filed 1 ANDA and received 5 approvals. Thus its filed total 77 ANDAs and one new drug application with the US FDA of which 33 are Para IV filings. So far it received approval for 33 ANDAs.