Alembic Pharmaceuticals (APLLTD) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue was ₹3,130.81 crore, broadly flat YoY; reported profit attributable to owners rose to ₹412.63 crore from ₹403.16 crore.

• Investments in R&D, US capabilities and manufacturing expansion remained central to the long-term growth strategy.

Financial highlights

• Consolidated revenue from operations was ₹3,130.81 crore vs ₹3,134.61 crore; GST accounting makes FY18 and FY17 revenue not comparable.

• Consolidated profit before tax was ₹541.27 crore vs ₹529.09 crore; profit attributable to owners was ₹412.63 crore vs ₹403.16 crore.

• Standalone revenue was ₹2,945.26 crore vs ₹2,985.90 crore; standalone PAT was ₹421.99 crore vs ₹430.63 crore.

• Operating cash flow was ₹312.42 crore consolidated vs ₹328.55 crore; investing cash outflow was ₹884.38 crore, including ₹749.36 crore for tangible assets and advances.

Outlook and guidance

• ₹1,100 crore of major capability and manufacturing projects were underway; injectable facilities targeted exhibit batches by H1 2019, and the Jarod oral-solid facility was expected by H2 2019.

• More than 10 new product launches were planned for FY19; planned projects also included general injectables, oncology injectables, derma and new oral solids.

• R&D advancement, complex generics, specialty injectables and continued compliance investment were priorities; actual results may differ materially from forward-looking expectations.