Release Date: February 07, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Alkem Laboratories Ltd (BOM:539523, Financial) reported a year-over-year growth in net profit of 5.2% for Q3 and 23.8% for the nine months of FY25.
- The company achieved a positive volume growth of 1.1% in a challenging market, outperforming the market's marginal 0.3% volume growth.
- Alkem Laboratories Ltd (BOM:539523) has successfully expanded its market share in 32 of its top brands on a year-over-year basis.
- The company has announced strategic acquisitions in the pharmaceutical and orthopedic sectors, which are expected to enhance its market presence.
- Alkem Laboratories Ltd (BOM:539523) has improved its supply chain in the US, reducing back orders from 38% to 2%, which is expected to contribute to future growth.
Negative Points
- The company's growth in the domestic market was slightly below the market growth rate, with a reported growth of 6% against the market's 7.2%.
- Alkem Laboratories Ltd (BOM:539523) faces increased competition and pricing pressure in its generic business, impacting growth.
- The company experienced a significant decline in its Chilean market due to unfavorable exchange rates and tender losses.
- There is an anticipated increase in expenses in Q4 due to additional filings and R&D spend, which may impact margins.
- Alkem Laboratories Ltd (BOM:539523) has not launched any new products in the US market during the current quarter, which could affect growth prospects.
Q & A Highlights
Q: Have the overhead expenses of around 70 crores started to come through, and can you provide a revised guidance for fiscal '25 EBITDA margin?
A: The expenses are expected to increase in Q4 due to higher filings, but the guidance remains at 19% EBITDA margin for the full year. (Respondent: CEO)
Q: Are there any low competition, high-value launches planned for the US market over the next 12 months, and what are the plans for GLP-1 in India?
A: We plan to be among the first wave of players to launch semaglutide in India. In the US, we have approval for Sacubitril Valsartan, expected to launch by July. (Respondent: CEO)
Q: Is there any forex-related charge impacting other expenses?
A: At the YTD level, there is a forex gain, but for the quarter, there was a loss due to currency depreciation in Chile, impacting other income. (Respondent: CFO)
Q: What is the outlook for the India business growth, and how are you addressing the slower growth in acute therapies?
A: We expect to be in line with market growth at around 7%. We are focusing on volume growth and new product launches like GLP-1 to surpass market growth. (Respondent: CEO)
Q: Can you provide details on the Bombay Auto acquisition and its expected impact?
A: The acquisition will help us capture growth in the value segment of orthopedic implants, providing manufacturing capabilities and reducing production costs. (Respondent: CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
