Alkem Laboratories (ALKEM) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue from operations rose 9.1% YoY to ₹115,992.6 million; EBITDA was ₹16,095 million and PAT was ₹9,841.7 million.

• India growth and other international markets offset weaker US pricing; EBITDA margin declined to 13.9% from 19.3%, reflecting price erosion, lower gross margin and normalized marketing spend.

Financial highlights

• Revenue from operations increased to ₹115,992.6 million from ₹106,341.9 million; reported growth was 9.1% YoY.

• EBITDA fell to ₹16,095 million from ₹20,529 million; EBITDA margin was 13.9% versus 19.3% in FY22.

• PBT after exceptional items was ₹13,047.7 million, down 29.3%; PAT attributable to owners was ₹9,841.7 million, down 40.1%.

• EPS was ₹82.31 versus ₹137.63; the ₹1,029.8 million exceptional charge related to impairment of fixed assets.

Outlook and guidance

• Domestic market outlook was 10–11% CAGR through FY25; strategic priorities include outperforming the market through launches, broader therapy coverage and distribution strength.

• US priorities include profitability, cost efficiency, compliant filings and portfolio expansion; biosimilars are positioned as a future growth engine, with investment focused on selected products.

• Other international markets plans emphasize select geographies, locally tailored launches, cost control and in-/out-licensing opportunities.