Anthem Biosciences (ANTHEM) Q4 22/23 earnings summary

Executive summary

• FY23 revenue fell 14.2% YoY to Rs 105,692.43 lakh; pre-exceptional PBT was Rs 43,598.03 lakh and PAT was Rs 38,567.11 lakh.

• Lower revenue reflected delayed USFDA inspection at Unit II, customer order deferrals and subdued demand; operating margin remained 40.7%, down 590 bps YoY.

• Capacity expansion, Unit II regulatory approvals and a new Unit III facility support planned growth in FY24 and beyond.

Financial highlights

• Revenue from operations was Rs 105,692.43 lakh in FY23 versus Rs 123,125.60 lakh in FY22; other income rose to Rs 7,737.17 lakh from Rs 4,898.05 lakh.

• Reported PBT was Rs 49,778.27 lakh, including a Rs 6,180.24 lakh exceptional gain; PBT before exceptional items was Rs 43,598.03 lakh.

• PAT was Rs 38,567.11 lakh versus Rs 40,599.02 lakh in FY22; total comprehensive income was Rs 38,642.67 lakh.

• Operating expenditure was Rs 63,461.97 lakh; depreciation and amortization was Rs 6,369.60 lakh, up from Rs 5,775.64 lakh.

• Operating cash flow was Rs 31,898.33 lakh; investing outflow was Rs 37,790.62 lakh, including Rs 17,867.98 lakh in fixed-asset and other capital expenditure.

Outlook and guidance

• FY24 outlook called for greater stability and continued success, supported by customer delivery, quality and innovation priorities.

• Unit III, focused on high-potent compounds and peptides, was expected to commence production in 2024; Phase I commissioning was also described as expected by end-2023.

• An oligonucleotide lab at Unit I was scheduled to go live in H2 2023.