Alkem Laboratories (ALKEM) Q4 13/14 earnings summary

Executive summary

• Gross sales rose 16.75% YoY to ₹272,645.20 lakh, while profit after tax declined to ₹44,410.34 lakh from ₹49,612.99 lakh.

• Pharmaceutical operations remained the primary business; reported international export markets expanded across Europe, Africa, Asia and Latin America.

Financial highlights

• Net revenue from operations was ₹270,839.71 lakh vs ₹232,789.51 lakh; total revenue was ₹287,774.15 lakh vs ₹249,713.08 lakh.

• Profit before tax was ₹45,511.47 lakh vs ₹50,990.98 lakh; profit after tax was ₹44,410.34 lakh vs ₹49,612.99 lakh.

• Other income was ₹16,934.44 lakh, nearly level with ₹16,923.57 lakh in FY13; total expenses rose to ₹242,262.68 lakh from ₹198,722.10 lakh.

• Employee benefits expense rose to ₹44,215.47 lakh from ₹36,841.15 lakh; finance costs increased to ₹8,427.41 lakh from ₹7,921.55 lakh.

• Sales of products were ₹272,645.20 lakh vs ₹233,528.73 lakh; export incentives and excise refunds were ₹4,225.63 lakh vs ₹4,094.34 lakh.

Outlook and guidance

• Plans include strengthening international business for greater consistency and profitability, following significant export growth in Europe, Africa, Asia and Latin America.

• R&D priorities include process cost reduction, new drug-delivery systems, herbal formulations, diagnostic kits, new molecules and bulk-drug manufacturing processes.