Akums Drugs and Pharmaceuticals (AKUMS) Q1 24/25 earnings summary

Executive summary

• Largest India-focused pharmaceutical CDMO with over 30% market share, 1,500+ clients, and 26 of the top 50 Indian pharma companies.

• Board approved unaudited standalone and consolidated financial results for Q1 FY25, with no auditor qualifications.

• Commercialized 4,000+ formulations across 60+ dosage forms, with 11 manufacturing units and 4 R&D centers employing 400+ scientists.

• Appointment of Mr. Amrut Medhekar as CEO for the CDMO business, effective 24 August 2024.

• Investment of INR 225 Cr. to set up manufacturing facilities in Jammu & Kashmir through a wholly owned subsidiary, leveraging a government industrial promotion scheme.

Financial highlights

• Consolidated revenue grew 5.1% year-over-year to INR 1,019 crores (₹10,191.13 million) in Q1 FY25.

• Adjusted EBITDA increased from INR 108 crores to INR 121 crores (margin up from 11% to 12.7%).

• Adjusted PAT margin improved from INR 38 crores to INR 57 crores (3.9% to 5.6%).

• Standalone net profit for Q1 FY25 was ₹418.75 million, compared to a net loss of ₹1,896.73 million in Q1 FY24.

• Basic and diluted EPS for Q1 FY25 stood at ₹2.93 (standalone) and ₹4.21 (consolidated).

Outlook and guidance

• Management expects continued volume and margin growth, but refrains from providing specific revenue guidance due to API price volatility.

• IPO completed post quarter-end, with shares listed on NSE and BSE on 6 August 2024; updates on IPO proceeds utilization to be provided in the next reporting period.

• New injectable facility expected to ramp up over FY25-26, with meaningful contributions anticipated.

• Limited seasonality, but Q2 and Q3 typically stronger due to monsoon and winter demand.