Alkem Laboratories Ltd, a leading pharmaceutical company, has announced a remarkable increase of 76.83% in its consolidated net profit for the second quarter ended September 30. The company reported a net profit of Rs 614.89 crore, compared to Rs 347.72 crore in the same quarter of the previous fiscal year. This impressive growth can be attributed to lower raw material costs and a decrease in the intensity of price erosion in the highly competitive US market. Alkem Laboratories made this announcement in a regulatory filing.
During this period, the company’s consolidated revenue from operations rose to Rs 3,440.17 crore from Rs 3,079.37 crore in the previous year’s second quarter. While total expenses slightly increased to Rs 2,797.66 crore from Rs 2,727.71 crore in the same period last year. Despite this, Alkem Laboratories managed to achieve significant gross margin enhancements and improved EBITDA margins.
Sandeep Singh, the Managing Director of Alkem Laboratories, expressed his satisfaction with the company’s performance. He highlighted the continued momentum from the first quarter, emphasizing the positive impact of lower raw material costs and reduced price erosion in the US market. Singh also mentioned the increased operating leverage contributing to improved EBITDA margins. He further stated that although domestic growth was subdued due to sporadic monsoon, the company observed significant traction in the domestic market during September and anticipates continued momentum in the upcoming quarter.
In terms of sales, Alkem Laboratories witnessed a 5% increase in India sales, with revenue reaching Rs 2,327.8 crore compared to Rs 2,216.1 crore in the previous year’s Q2. Singh also reiterated the company’s strong performance in both the US and non-US markets, with remarkable growth in international sales. International sales recorded a significant increase of 27.1% at Rs 1,054.2 crore, compared to Rs 829.1 crore in the same quarter last year.
Singh expressed his satisfaction with the company’s biosimilars portfolio, highlighting the success of Enzene’s latest product addition, Ranibizumab. With a total of 7 products now in the biosimilars suite, Alkem Laboratories has witnessed significant traction in the domestic biosimilars market. Singh concluded by reaffirming the company’s commitment to continued operational performance and building on their recent successes.
Alkem Laboratories’ strong financial results, driven by lower raw material costs and improved performance in both domestic and international markets, demonstrate its position as a leading player in the pharmaceutical industry. With a focus on innovation and expanding its product portfolio, the company is well-positioned for future growth and success.
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