Alembic Pharmaceuticals (APLLTD) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 revenue grew 5% year-over-year to INR 1,562 crores (INR 15.62 billion), with EBITDA up 14% to INR 239 crores and net profit rising 12% to INR 135 crores.

• EPS for the quarter was INR 6.84, up from INR 6.14 in the same quarter last year.

• India branded business grew 9% to INR 572 crores, with strong specialty therapies and animal healthcare up 23%.

• US generics business grew 18% to INR 461 crores, while ex-US generics grew 2% and API business declined 15%.

• Strategic focus on new launches, digital transformation, and capacity expansion across segments.

Financial highlights

• EBITDA margin stood at 15.3% of sales; net profit margin at 8.6%.

• Gross borrowing increased to INR 589 crores from INR 430 crores; cash rose to INR 147 crores.

• R&D expense was 7% of sales at INR 114 crores for the quarter.

• Gross margin remained stable at around 75% for the quarter.

• India Branded Business revenue: INR 5.72 billion; US Generics: INR 4.61 billion; Ex-US: INR 2.71 billion; API: INR 2.59 billion.

Outlook and guidance

• US business expected to grow 10%-15% for FY25, with 10 new product launches planned in the next quarter.

• ROW business expected to return to growth as supply constraints are resolved.

• API business anticipated to resume 10% year-on-year growth after current challenges are addressed.

• R&D spend projected at INR 550 crores for the year.

• EBITDA margins expected to improve to 18%-20% over 2-3 years as new facilities ramp up.