Alkem Laboratories (ALKEM) Q4 11/12 earnings summary

Executive summary

• FY12 gross sales rose 18.26% YoY to Rs 1,97,352.60 lakh; profit after tax increased to Rs 42,548.12 lakh from Rs 32,342.50 lakh.

• Expansion included new subsidiaries in Malaysia, Chile and Kenya and a majority stake in Enzene Biosciences.

Financial highlights

• Net revenue from operations was Rs 1,95,339.62 lakh vs Rs 1,65,244.58 lakh; other income was Rs 13,483.82 lakh vs Rs 10,981.61 lakh.

• Profit before tax was Rs 45,438.23 lakh vs Rs 35,520.96 lakh; PAT was Rs 42,548.12 lakh vs Rs 32,342.50 lakh.

• Total expenses rose to Rs 1,63,385.21 lakh from Rs 1,40,705.23 lakh; materials consumed were Rs 58,632.47 lakh vs Rs 54,197.44 lakh.

Outlook and guidance

• R&D priorities include new formulations, drug-delivery systems, APIs, export products, herbal formulations, diagnostic kits and process improvements targeting cost reduction.

• Export development efforts are focused on new markets; stated destinations include Europe, Mauritius, New Zealand, South America and Africa.