Akums Drugs and Pharmaceuticals (AKUMS) Q4 21/22 earnings summary

Executive summary

• FY2021-22 delivered strong revenue and EBITDA growth, but consolidated results swung to a net loss, largely reflecting a ₹4,941.74 million fair-value charge on the investor put option.

• Growth was supported by CDMO, marketing and API operations, capacity additions and acquisitions; plans target further expansion across business lines.

Financial highlights

• Consolidated revenue from operations rose 35% YoY to ₹36,772.93 million; total income was ₹36,945.23 million versus ₹27,437.85 million.

• Consolidated EBITDA increased to ₹4,250.85 million from ₹3,123.22 million; net loss was ₹2,508.74 million versus net profit of ₹1,234.35 million.

• Standalone revenue from operations rose 39% to ₹11,620.61 million and EBITDA increased 40.42% to ₹1,906.14 million; standalone net loss was ₹3,817.75 million.

• Consolidated total assets increased to ₹30,690.47 million from ₹21,668.71 million; equity attributable to shareholders fell to ₹6,219.76 million from ₹8,848.47 million.

Outlook and guidance

• Production volumes were expected to rise to 27 billion tablets in FY2022-23 from 20 billion in FY2021-22, supported by organic and inorganic capacity expansion.

• The Baddi facility was expected to become operational in Q3 FY2022-23, adding planned capacity of 6 billion tablets and 90 million oral-liquid units annually.

• CDMO is expected to remain the main growth driver; APIs, nutraceuticals and ethical marketing were identified as future growth engines.

• Strategy includes developing regulated-market exports, new delivery systems and formulations designed to improve bioavailability and reduce dosing frequency.