Alkem Laboratories (ALKEM) Q4 14/15 earnings summary

Executive summary

• FY2014-15 standalone revenue from operations rose to Rs 31,375.6 million from Rs 26,776.9 million; consolidated revenue reached Rs 37,433.5 million from Rs 31,307.5 million.

• Profit after tax declined YoY on both bases: standalone Rs 3,676.9 million vs Rs 4,441.1 million; consolidated Rs 3,915.9 million vs Rs 4,390.0 million.

• Consolidated revenue growth was reported at 19.57%; standalone turnover growth was 17.17%.

Financial highlights

• Standalone total revenue was Rs 33,196.9 million vs Rs 28,471.6 million; profit before tax was Rs 3,953.3 million vs Rs 4,551.2 million.

• Consolidated total revenue was Rs 39,243.9 million vs Rs 32,997.7 million; profit before tax was Rs 4,508.2 million vs Rs 4,485.0 million.

• Consolidated operating revenue was Rs 37,433.5 million, with other income of Rs 1,810.4 million; standalone other income was Rs 1,821.3 million.

• Export turnover on a standalone basis was Rs 3,448.2 million vs Rs 2,783.8 million; foreign exchange earnings were Rs 3,516.2 million.

• Consolidated operating cash flow was Rs 3,254.6 million vs Rs 2,900.4 million; standalone operating cash flow was Rs 2,415.4 million vs Rs 2,643.8 million.

Outlook and guidance

• R&D priorities include cost reduction and process simplification, new drug-delivery systems, pharmaceutical and nutritional supplements, herbal formulations, diagnostic kits and new molecules.

• CSR activities were expected to expand in coming years following creation of an internal framework; FY2014-15 spending was Rs 12.0 million against a gross requirement of Rs 94.6 million.