Alkem Laboratories conducted their conference call today at 4:30.
"Guidance for EBIDTA margins to be around 20%"
Here are the key takeaways π
"Guidance for EBIDTA margins to be around 20%"
Here are the key takeaways π
Business Update:
β’ India business grew 17.1% YoY.
β’ Therapy segment grew well, of which major contribution of growth is Anti-Diabetic, Neuro, Vitamins, Gastro.
β’ In this quarter Alkem has filed 4 new ANDA and received 10 approvals.
FY21- 9 ANDA filed with 25 approval.
β’ India business grew 17.1% YoY.
β’ Therapy segment grew well, of which major contribution of growth is Anti-Diabetic, Neuro, Vitamins, Gastro.
β’ In this quarter Alkem has filed 4 new ANDA and received 10 approvals.
FY21- 9 ANDA filed with 25 approval.
Gross Margin:
β’ Inventory Provision of 80 cr was taken, which declined margins.
β’ In More than 6 months inventory, if NRV seems to be unrecognizable, provision is made.
β’ Inventory Provision of 80 cr was taken, which declined margins.
β’ In More than 6 months inventory, if NRV seems to be unrecognizable, provision is made.
US Business:
β’ 10% de-grew QoQ basis compared to last year.
β’ Winter season business didn't went well in US.
β’ Loss of market share impacted the sales.
β’ Tail ending delay of launching new product.
β’ Due to inventory, this quarter US business is RBIDTA negative.
β’ 10% de-grew QoQ basis compared to last year.
β’ Winter season business didn't went well in US.
β’ Loss of market share impacted the sales.
β’ Tail ending delay of launching new product.
β’ Due to inventory, this quarter US business is RBIDTA negative.
Geographic Mix:
β’ Alkem is very focus towards the geographic market.
β’ Most of the revenue comes from 3-4 concetrated market.
β’ Focus remains on Austria, US, Europe and then on other emerging market such as Kazakistan, East Africa.
β’ Alkem is very focus towards the geographic market.
β’ Most of the revenue comes from 3-4 concetrated market.
β’ Focus remains on Austria, US, Europe and then on other emerging market such as Kazakistan, East Africa.
β’ In US, Alkem is still half of what it currently is and focus is to increase market share.
India Business:
β’ Investment in India is done and Alkem is already ahead of the curve.
India Business:
β’ Investment in India is done and Alkem is already ahead of the curve.
Covid:
β’ This time covid is difference compared to last year.
β’ Pneumonia has grown large during this time in covid. This has resulted growth in antibiotics, antitherapeutic . Hence Alkem is expecting this Q1 to grow more than Q1 of FY 2020.
β’ This time covid is difference compared to last year.
β’ Pneumonia has grown large during this time in covid. This has resulted growth in antibiotics, antitherapeutic . Hence Alkem is expecting this Q1 to grow more than Q1 of FY 2020.
β’ OPD business is very high hence this off-setted other sector such as Anti Therapeutic .
β’ Some of Antibiotics had weak sales but other Anti Therapeutic business impacted due to lack of surgery. However Antibiotics are now back to normal.
β’ Some of Antibiotics had weak sales but other Anti Therapeutic business impacted due to lack of surgery. However Antibiotics are now back to normal.
Chronic Diagnostic:
β’ Segment is expected to double in next 2-3 years/.
β’ Alkem expect 3 new product to launch which are blockbuster.
β’ Co. is building large brands and also adding block buster product. Major focus remains on improving productivity.
β’ Segment is expected to double in next 2-3 years/.
β’ Alkem expect 3 new product to launch which are blockbuster.
β’ Co. is building large brands and also adding block buster product. Major focus remains on improving productivity.
Product Launch:
β’ This year Alkem expecting double digit new launches.
β’ For Indore facility Alkem is waiting for US FDA and new product has been planned for this product, which is in line of Alkem.
β’ This year Alkem expecting double digit new launches.
β’ For Indore facility Alkem is waiting for US FDA and new product has been planned for this product, which is in line of Alkem.
Trade Generic Market:
β’ Market is expected to grow well and growth is expected to be similar in the range of growth in India.
Pricing Part:
β’ Price deflation has been in the higher single digit this quarter.
β’ Market is expected to grow well and growth is expected to be similar in the range of growth in India.
Pricing Part:
β’ Price deflation has been in the higher single digit this quarter.
Cash Usage:
β’ Alkem will have cash surplus. There is not much big change in CAPEX plan and dividend policy.
Other Expense:
β’ Q4 Advertisement expense was highest this quarter, as past quarters Alkem had very few expense and these spend is even done for the coming few contracts
β’ Alkem will have cash surplus. There is not much big change in CAPEX plan and dividend policy.
Other Expense:
β’ Q4 Advertisement expense was highest this quarter, as past quarters Alkem had very few expense and these spend is even done for the coming few contracts
Tax Expense:
β’ FY 2022:23 effective tax rate is expected to be 13-14% and for the coming 2-3 year tax rate is expected to be same.
β’ FY 2022:23 effective tax rate is expected to be 13-14% and for the coming 2-3 year tax rate is expected to be same.
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