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  • 04 May 2022
  • ICICIdirect Research

ALEMBIC ONE-OFFS DRIVE US, ALEOR DRAGS PROFITABILITY

APLLTD - 1208 Change: -8.60 (-0.71 %)

News: Revenues grew 10.6% YoY to Rs 1415.7 crore. Domestic Formulations grew 25.4% YoY to Rs 449 crore due to faster growth in acute segment. US generics grew 17.3% YoY at Rs 557 crore mainly due to 1) one one-off opportunity, 2) restocking in US and 3) market share gains in some products. International formulations sales de-grew 19.3% YoY at Rs 188 crore while APIs grew 3.7% YoY to Rs 222 crore on a high base of Azithromycin. EBITDA margins declined by 1370 bps YoY to 11.3% mainly due to lower gross margins (down 268 bps YoY to 72.7%) and higher other expenditure due to Aleor’s recurring R&D expenses. Adjusted EBITDA margins were at ~ 20%. EBITDA declined 50% YoY to Rs 160.1 crore. Adjusted EBITDA for Q4FY22 was Rs 286 crore. PAT de-grew 86% YoY to Rs 35.5 crore while adjusting for Rs 145 crore impact of Aleor, Adjusted PAT was at Rs 180.5 crore.

Views: Alembic’s numbers were a significant beat on revenues on back of better traction in the US driven by one-off opportunity and inventory re-stocking. On the profitability front however the numbers were optically muted due non-recurring expenses at its subsidiary Aleor (now wholly owned) trending accelerated amortization of existing intangible assets and non-recognition of current year R&D expenses as intangible assets. New launches and commercialsation of new facilities earmarked for the US market and consistency of performances in the Indian branded formulations are key levers for the company.

Impact: Neutral