Alivus Life Sciences (ALVUS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw broad-based revenue growth, with nearly 10% sequential increase and recovery across geographies, notably in India, Japan, Europe, LATAM, and ROW.

• Generic API business grew 10.5% QoQ and 6.2% YoY, with strong contributions from regulated and emerging markets.

• The quarter was the first without the PLI benefit, impacting gross margins.

• Production at the Ankleshwar facility was temporarily halted by the Gujarat Pollution Control Board due to environmental concerns, but management expects a quick resolution.

• Minimum public shareholding requirement was achieved post-IPO.

Financial highlights

• Revenue from operations for Q1 FY25 was ₹5,886.16 million (INR 588 crores), up 9.7% QoQ and 1.8% YoY.

• EBITDA stood at ₹1,650 million (INR 165 crores), up 14.1% QoQ, with margin at 28%.

• PAT was ₹1,115 million (INR 111 crores), with PAT margin of 18.9%.

• Gross profit was ₹301 crores (51.1% margin), down from 55.5% in Q4 FY24 due to loss of PLI benefit and product mix.

• Free cash flow generated was ₹1,213 million (INR 121 crores); cash and equivalents at ₹4,263 million (INR 426 crores) as of June 30, 2024.

Outlook and guidance

• Management expects continued strong demand and stable margins for the coming quarters, supported by brownfield expansions and the upcoming Solapur facility.

• CDMO business is expected to pick up from Q3 onwards, with a new multi-year contract to commercialize in Q4 FY25.

• The company is addressing regulatory issues at Ankleshwar and expects resolution soon.