Akums Drugs and Pharmaceuticals (AKUMS) Q4 22/23 earnings summary

Executive summary

• FY23 revenue was nearly flat YoY, while standalone income and EBITDA rose; consolidated PAT returned to profit after a prior-year loss.

• Leadership in pharmaceutical contract manufacturing continued, with >12% domestic market share, over 1,100 clients, and business with 41 of India’s top 50 pharma companies.

• API manufacturing and international expansion advanced, though the API division remained in an investment and loss-making phase.

Financial highlights

• Standalone revenue from operations was ₹12,868.26 mn vs ₹11,620.61 mn; total income was ₹13,829.79 mn vs ₹12,205.37 mn, up 10.74% and 13.31%, respectively.

• Standalone EBITDA was ₹2,940.61 mn, up 54.27%; PAT was ₹1,254.30 mn vs a loss of ₹3,817.75 mn, and EPS was ₹8.77 vs negative ₹26.69.

• Consolidated revenue was ₹36,548.20 mn vs ₹36,772.93 mn; total income was ₹37,009.25 mn vs ₹36,945.23 mn.

• Consolidated EBITDA was ₹3,400.86 mn vs ₹4,250.85 mn; PAT was ₹978.17 mn vs a loss of ₹2,508.74 mn, with EPS ₹6.84 vs negative ₹17.54.

• Consolidated operating cash flow was ₹1,766.31 mn vs ₹328.03 mn; investing outflow was ₹3,047.02 mn and financing inflow ₹1,245.40 mn.

Outlook and guidance

• Plans include expanding oral solid, liquid, injectable and nutraceutical capacity, plus evaluating lyophilized injectables, nasal sprays and new-age protein supplements.

• A new injectable unit was targeted to become operational in Q4 2023; a further nutraceutical facility is planned to serve sports, medical nutrition and wellness markets.

• Export growth priorities include global plant approvals, dossier filings, collaborations and broader entry into regulated markets; management aims for 20% domestic market share over four to five years.

• API capacity, R&D, quality assurance and manufacturing investment are planned to strengthen global competitiveness and supply-chain reliability.