Akums Drugs and Pharmaceuticals (AKUMS) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue grew 14.32% to Rs 41,781.82 million; EBITDA rose to Rs 5,147.84 million, while a Rs 3,577.74 million put-option fair-value charge contributed to a Rs 452.78 million pretax loss.

• CDMO remained the core growth engine, with over 17% revenue growth, a reported ~30% share of India’s domestic CDMO market by value and more than 1,500 clients served.

• Filed a draft prospectus in February 2024 for a proposed IPO; after year-end, the investor waived the buyback right underlying the put option.

Financial highlights

• Consolidated revenue from operations was Rs 41,781.82 million vs Rs 36,548.20 million; total income was Rs 42,122.07 million vs Rs 37,009.25 million.

• Consolidated EBITDA was Rs 5,147.84 million vs Rs 3,400.86 million; PAT was Rs 7.90 million vs Rs 978.17 million, with EPS of -Rs 0.28 vs Rs 6.63.

• Standalone revenue rose 12.22% to Rs 14,441.19 million; standalone loss was Rs 1,654.51 million vs profit of Rs 1,254.30 million, and EPS was -Rs 11.56 vs Rs 8.77.

• Standalone other income was Rs 941.21 million; it included Rs 738.62 million interest income on related-party loans and Rs 89.35 million share of profit from an LLP.

Outlook and guidance

• Management expected volume-led CDMO growth to support a stronger FY25; two additional CDMO manufacturing units were expected to become operational in FY25.

• API exports are targeted as a future growth driver; plans include continued R&D and infrastructure investment, with API losses significantly reduced in FY24.

• Planned capex includes Rs 100 million annually for maintenance, replacement and modernization over three years, Rs 350 million for CDMO over two years and Rs 60 million for API over three years, funded from internal accruals.

• Proposed IPO proceeds were intended for incremental working capital, inorganic growth, repayment of certain borrowings and general corporate purposes; a fresh issue of up to Rs 6,800 million was described.