Alembic Pharma Rises Despite Q1 Margin Pressure
Shares of Alembic Pharmaceuticals rose 0.45% on Tuesday after Q1 profit grew, even as operating margins came under pressure.
Net profit for the June quarter climbed 11.7% to Rs 172 crore, up from Rs 154 crore a year earlier. Revenue rose 26% to Rs 2,150 crore, against Rs 1,710 crore in the same period last year.
Operating profit, or EBITDA, grew 18.6% to Rs 333 crore from Rs 280.5 crore. But as a share of revenue, it slipped to 15.5% from 16.4% a year ago. In plain terms, the company made more money overall, but held on to a slightly smaller portion of each rupee earned.
Growth wasn’t uniform across the business. The India branded business grew 7%, with revenue at Rs 642 crore. Within that, gynaecology, gastrology and ophthalmology all posted strong growth, and the company described its animal healthcare performance as encouraging.
The bigger driver was overseas. US formulation sales jumped 49% from the previous year, helped by new product launches and higher volumes. Even excluding the US formulations business, growth stood at 17%, which the company attributed to expanding its offerings and widening its market reach.
Alembic also said its post R&D EBITDA rose 21% year on year, supported by operating leverage gains as it expands its US branded portfolio and pushes ahead with its R&D pipeline, particularly in peptide development and new filings.
At the close, the stock settled at Rs 809.40 on the NSE, up 0.45% for the day, and was last seen trading a touch higher at Rs 811, up 0.65%. Alembic Pharma is still down about 3.18% for the year so far.
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