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