Thread by @ValueEducator

#AlembicPharma Q3 FY22 concall highlights

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1. Revenues for the quarter stood at ₹1272 Cr (3% decline YoY).

2. EBITDA for the quarter was ₹269 Cr (33% decline YoY). EBITDA margin was at 21% for the quarter.

3. PAT stood at 176 Cr (40% decline YoY).

4. They believe the price erosion in the US business has normalized and they can grow with new launches from here on.

5. They have a couple of first-to-file launches coming up in FY23.

6. R&D expenditure for the quarter was at ₹154 Cr which is about 12% of sales. They have filed 6 ANDAs during the quarter.

7. They received 4 approvals during the quarter including 2 tentative approvals. They launched 6 products in Q3 and plan to launch 5 more in Q4 of FY22.

8. FDA inspection of their injectables facility took place during the quarter and they received observations which they have responded to.

9. The US generics business declined by 23% during the quarter to ₹393 Cr. The ex-USA generics business grew by 13% to ₹193 Cr.
The API business declined by 7% to ₹198 Cr. API had a high base last year due to the COVID related Azithromycin.

10. India Branded Generics business posted revenues of ₹488 Cr (17% growth YoY). This does not include any COVID related products.

11. The Animal Health business continues to grow very well and posted a growth of 24% in YoY on a high base of last year.

12. Management believes the worst of the price erosion is behind them. If there is further erosion from here on, it will be in the low single digits. That can be made up for with increase in market share and new product launches.

13. For the India business, they expect to grow at least 5-6 percentage points over the overall market growth rate. Operational efficiencies and high growth products in the portfolio are expected to drive this growth.

14. They have seen good growth in the anti-diabetic portfolio due to a couple of successful new launches.

15. On the oncology side, most of the future launches will be first-to-file (Para 4). They believe most of the Para 4 opportunities in the US are in the oncology segment.