Alkem Laboratories (ALKEM) Q4 15/16 earnings summary

Executive summary

• FY16 consolidated net operating revenue rose 33.3% to ₹49,915.4 million; gross and EBITDA margins expanded by more than 500 bps, with growth across India and international markets.

• Domestic brands and established therapies remained the core, while US generics, emerging therapies and acquisitions broadened growth opportunities.

Financial highlights

• Consolidated revenue from operations was ₹49,915.4 million versus ₹37,433.5 million; total revenue including other income was ₹51,560.5 million versus ₹39,243.9 million.

• EBITDA was ₹8,482 million; reported PAT after minority interest was ₹6,731.2 million versus ₹3,915.9 million, and EPS was ₹56.30 versus ₹32.75.

• Gross margin improved to 60.7% from 54.8%, and EBITDA margin to 17.0% from 11.3%.

• Consolidated PBT rose to ₹8,451.0 million from ₹4,508.2 million; PAT growth includes an ₹834.1 million MAT credit write-off.

Outlook and guidance

• FY17 priorities: grow ahead of the domestic market, strengthen established therapies, expand chronic and emerging therapies, launch products, and improve field-force productivity.

• US outlook is supported by 77 filed ANDAs, including one NDA, an established commercial front end, and expectations of more launches as approval timelines improve.

• International growth plans target the US, Australia, Chile, Kazakhstan and the Philippines through market-share gains, new products, partnerships and selective acquisitions.

• R&D priorities include faster US ANDA filings, differentiated products and long-term biosimilar development in oncology, autoimmune disorders and osteoporosis.