Alembic Pharmaceuticals (APLLTD) Q4 14/15 earnings summary

Executive summary

• FY15 revenue and profitability advanced despite challenging conditions in India and the US; PAT grew at a 31% 3-year CAGR through FY15.

• Capability-building investments across manufacturing, R&D, supply chain and market access positioned the business for planned growth in India and regulated markets.

Financial highlights

• Standalone revenue from operations rose 10.32% to ₹2,019cr; standalone PAT increased to ₹286.61cr from ₹238.28cr.

• Consolidated revenue from operations reached ₹2,056.12cr vs ₹1,863.22cr; consolidated PAT was ₹282.92cr vs ₹235.51cr.

• Consolidated EBITDA was ₹405.26cr vs ₹360.91cr; consolidated EPS was ₹15.01 vs ₹12.49.

• R&D spend was ₹139.30cr, or 6.8% of revenue; employee expenses rose 24.19% amid workforce expansion.

Outlook and guidance

• Plans call for 7–8 US product launches and 10–12 ANDA filings annually; direct US marketing benefits are expected from FY17.

• India plans include around 30 product SKUs annually, mainly chronic therapies, and new urology and women’s healthcare divisions.

• Planned launch cadence includes 8–10 US products yearly, 10 European products over three years and 25–30 India products annually.

• Management targets incremental-investment ROI of 24%± and expects US front-end marketing and division scale-up to support margin expansion.