Alivus Life Sciences (ALVUS) Q4 22/23 earnings summary

Executive summary

• FY23 delivered modest revenue growth with stronger profitability, driven by Generic APIs, PLI income, improved product mix and operating leverage; CDMO demand recovered in Q4.

• Strategy centers on broader products, customers and geographies, complex APIs and oncology, CDMO expansion, cost efficiency and capacity growth.

Financial highlights

• Revenue from operations rose 1.8% YoY to ₹21,612 million; total income increased 2.4% to ₹21,902 million.

• EBITDA increased 6.4% to ₹6,712 million; EBITDA margin was 31.1%, versus 29.7% in FY22.

• Net profit rose 11.5% to ₹4,670 million; basic EPS increased 7.0% to ₹38.11.

• Product sales declined 1.9% to ₹20,478 million, largely due to a higher FY22 base from COVID-related products; other operating revenue rose 217% to ₹1,134 million, including ₹640 million of PLI income.

• Net cash from operations was ₹3,134 million, compared with ₹5,976 million in FY22; year-end cash and equivalents were ₹2,838 million.

Outlook and guidance

• Remaining 208 KL of Ankleshwar intermediate capacity was slated to be operational in H2 FY24; Solapur greenfield construction was planned to start in FY24, with 1,000 MT annual capacity.

• Reactor capacity of 1,198 KL was projected to exceed 1,400 KL in FY24; continued focus on Generic API growth, CDMO expansion, complex APIs, oncology and operating efficiencies.

• Pipeline includes 32 new products and 40 cost-improvement projects, including 9 oncology products; 5 of 9 high-potent API molecules were at advanced stages.