- 09 Aug 2024
- ICICI Securities
ALEMBIC PHARMA Q1FY25 – US, INDIA LED GROWTH BUT MARGINS STILL BELOW-PAR
APLLTD - 913 Change: -1.60 (-0.17 %)News: Revenues grew 5% YoY to ₹ 1562 crore, mainly driven by growth in the US and India but pulled down a de-growth in API business. EBITDA grew ~19% YoY to ₹ 237 crore and margins stood at 15,2% (180 bps improvement). Higher EBTDA growth was attributable to higher GPM (up 259 bps to 74.8%) and lower R&D expenses. PAT grew 11% to ₹ 134.2 crore. US Generics grew 18% to ₹ 461 crore for the quarter driven by 2 new launches in the quarter and market share gain in the recently commercialized products. Ex-US generics grew 2% YoY to ₹ 271 crore. India Branded Business grew 9% to ₹ 572 crore driven by ~23% growth in animal health and 10% growth in specialty portfolio.
Views: While both the US and India growth looks encouraging, EBITDA margins continue to languish in the 15-17% range despite strong GPM range of 70-75%. Operating expenses related to new plants and higher R&D expenses (lower compared to earlier years but still higher in absolute terms) continue to suppress EBTDA margins. Going ahead, the progress on the margin’s fronts and continuity in US traction would be the key monitorable.
Impact: Neutral