Alkem Laboratories (ALKEM) Q4 18/19 earnings summary

Executive summary

• FY19 revenue crossed US$1B, reaching ₹73,572 million, up 14.9% YoY; consolidated PAT rose 20.5% to ₹7,605 million.

• International growth led results, while domestic sales faced selected FDC bans, a weak anti-infective season and slower trade-generic growth; strategic priorities include R&D, cost containment and digitalisation.

Financial highlights

• Revenue from operations ₹73,572 million, up 14.9%; EBITDA ₹11,148 million, up 10.5%; PBT ₹9,547 million, up 3.1%; PAT after minority interest ₹7,605 million, up 20.5%.

• Gross profit ₹44,122 million, up 9.8%; gross margin fell to 60.0% from 62.8%, and EBITDA margin to 15.2% from 15.8%.

• Consolidated EPS ₹63.61 versus ₹52.77; lower effective tax rate of 19.0% versus 31.1% supported PAT growth.

• Operating cash flow rose to ₹7,774 million from ₹2,660 million; cash and cash equivalents ended FY19 at ₹2,491 million.

Outlook and guidance

• Growth priorities include scaling chronic therapies in India, maintaining acute-segment leadership, commercialising the US ANDA pipeline, expanding select international markets and developing biosimilars.

• Cost containment and process digitalisation are key priorities to improve profitability, efficiency and transparency.

• More than half of 127 cumulative US ANDA filings were yet to be commercialised; approvals and launches were identified as key growth drivers.