Alembic Pharmaceuticals (APLLTD) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue was ₹3,934.68 crore and PAT ₹584.37 crore; growth was led by international generics, with domestic branded business also advancing.

• US sales benefited partly from a short-term supply opportunity in Q2; capacity expansion and a broader product pipeline are intended to support longer-term growth.

Financial highlights

• Consolidated revenue from operations: ₹3,934.68 crore vs ₹3,130.81 crore in FY18; net profit: ₹584.37 crore vs ₹412.63 crore.

• Consolidated EBITDA was ₹875 crore vs ₹642 crore; management cited five-year CAGRs of 17% for EBITDA and 16% for PAT.

• Standalone revenue from operations was ₹3,660.27 crore vs ₹2,945.26 crore; standalone PAT was ₹611.21 crore vs ₹421.99 crore.

• Consolidated operating cash flow was ₹811.96 crore vs ₹312.42 crore; year-end cash and cash equivalents were ₹199.07 crore vs ₹83.74 crore.

Outlook and guidance

• Around 20 US launches were planned for FY20; ANDA filings from ophthalmic, general injectable, oncology injectable and oral solid plants targeted H2 FY20.

• Dermatology commercial production for the US market was expected in FY20, with the first Aleor plant product targeted for H1 FY20.

• US international generics were expected to ramp up in coming years as new facilities launch products; post-FY21 lower capex intensity was expected to improve free cash flow.

• New facilities were expected to meet requirements for the next 3–4 years once commissioned.