Alkem Laboratories Q2 net profit up 76% at Rs 614.89 cr

Alkem Laboratories Ltd on Tuesday reported a 76.83% rise in consolidated net profit at Rs 614.89 crore for the second quarter ended September 30, on the back of lower raw material cost and lower intensity of price erosion in the US market. The company had posted a consolidated net profit of Rs 347.72 crore in the second quarter of the last fiscal year, Alkem Laboratories said in a regulatory filing.

Consolidated revenue from operations stood at Rs 3,440.17 crore, as compared to Rs 3,079.37 crore in the year-ago period, it added.

Total expenses in the quarter were marginally higher at Rs 2,797.66 crore, as against Rs 2,727.71 crore in the same period a year ago, the company said.

"Continuing our trend of improved performance, Q2 builds on the momentum gained in Q1 with significant gross margin enhancements backed by lower raw material cost and lower intensity of price erosion in the US market and increased operating leverage, resulting in improved EBITDA margins," Alkem Laboratories Managing Director Sandeep Singh said.

Domestic growth for the quarter remained subdued due to sporadic monsoon, he said, adding "we observed significant traction in the domestic market during September and anticipate continued momentum in the coming quarter"

The company's India sales increased by 5% to Rs 2,327.8 crore, as compared to Rs 2,216.1 crore in Q2FY23.

On the international business, Singh said both the US and non-US markets maintained robust performance, which was "evident in Q1 and continues to flourish".

Alkem said its international sales grew by 27.1% to Rs 1,054.2 crore, as compared to Rs 829.1 crore in the year-ago quarter.

"Our biosimilars portfolio is performing impressively, with Enzene's latest product addition (Ranibizumab), taking the product suite to 7, and witnessing significant traction in the domestic biosimilars market.

"We are committed to carrying forward the momentum of better operational performance, building on our recent successes," Singh said.