Alembic Pharma's Revenue At Rs 1,475 Cr In Q2FY23, PAT Drops by 22%

Alembic Pharmaceuticals, the Indian pharma major headquartered in Vadodra on Friday announced its consolidated financial results for the second quarter that ended 30th September 2022, the pharmaceutical company registered a 10.9 per cent rise in its consolidated revenues year on year, with the company's revenue for the second quarter stood at Rs 1,475.34 crores against Rs 1,313.19 crores in the same quarter last year.

The company recorded a net profit of Rs 133.35 crores in quarter two of the financial year 2023(Q2FY23) against Rs 163.99 crores recorded in the corresponding quarter in the previous year, a drop of 22.9 per cent year on year.

Alembic posted an EBITDA of Rs 1,322.38 crores for the second quarter up by 15.8 per cent quarter on quarter from Rs 1,112.95 crores registered in the corresponding quarter of last year.

The company in a statement said that its Indian formulations business grew by 11 per cent to Rs 549 crores in the September quarter, whereas US generics grew by 20 per cent to Rs 418 crores in the second quarter. The company's API (Active Pharmaceutical Ingredient) also grew by 23 per cent at Rs 294 crores in the quarter.

“It was a satisfactory quarter led by growth in all the verticals of the company, in particular the API business outperformed with a 23 per cent growth during the quarter,” said Pranav Amin, Managing Director, Alembic Pharmaceuticals Limited.

While speaking with BW BusinessWorld Amin said that overall the company has had a topline growth across segments, with the Indian business growing at 8 per cent, "In India our speciality segment grew faster than the market, whereas the rest of the world generics business grew at about 9 per cent," he said.

Explaining Alembic’s research expense, Amin said that the company’s research spend for the quarter is about Rs 168 crores, which is around 11 per cent of its sales, it has come down in the quarter due to pricing pressures and erosion in the US market, hence the company plans to shift from US research to other territories.

Speaking about the macro pressures Amin said "We are seeing unprecedented pricing pressures in the US market, and Alembic has had phenomenal growth in the US in the last 5-6 months, but there is too much oversupply in the US market currently which has caused the pricing pressures and has dragged most of our margins down. Our transport and logistics cost has also gone up in the quarter.”

While giving the sense of the coming quarter Amin stated the company will see some of the complex injectables filings going through like Peptide Injectables, Prefill Syringes, Auto-Injectors and some oncology nanoparticle products as well.

The company's stock was trading 3.81 per cent higher at Rs 639.50 a piece as of 15:28 IST.