Alembic Pharmaceuticals (APLLTD) Q4 15/16 earnings summary

Executive summary

• FY2015-16 was a record year: revenue rose 53% YoY to ₹3,145 crore, EBITDA reached ₹1,006 crore and net profit more than doubled to ₹719 crore.

• Performance was led by the US launch of generic Abilify (Aripiprazole); R&D, manufacturing capacity and a direct US marketing presence were expanded to support longer-term growth.

Financial highlights

• Consolidated revenue from operations was ₹3,148.71 crore vs ₹2,056.12 crore; consolidated profit after tax was ₹719.44 crore vs ₹282.92 crore.

• Standalone revenue from operations increased to ₹2,991.74 crore from ₹2,019.00 crore; standalone net profit rose to ₹698.14 crore from ₹286.61 crore.

• Consolidated EPS was ₹38.16 vs ₹15.01; proposed dividend was ₹4.00/share, up from ₹3.50/share.

• Operating expenses for materials, employees and R&D rose 31% to ₹1,498 crore; R&D expense increased 152.47% to ₹307 crore.

Outlook and guidance

• Planned fixed-asset investment of ₹1,000 crore over 24–30 months, focused on oncology, injectables and dermatology capacity.

• International Formulation ANDA filings targeted at around 15 in FY2016-17 and 20+ in FY2017-18, vs eight filed in FY2015-16.

• Algeria JV commercial operations were expected to begin in FY2016-17; the Sikkim greenfield facility began operations in FY2015-16.

• Management expected near-term revenue and margin pressure could be accepted to support sustainable medium- and long-term growth.