Alembic Pharma posts 45% dip in Q1 net at Rs 165 cr amid price erosion

Firm's consolidated revenues from operations also fell marginally to Rs 1,326 cr in Q1FY22, from Rs 1,341 crore a year ago

Price erosion amid increased competition in the US market dragged down Alembic Pharmaceuticals Ltd's (APL)'s consolidated net profit by 45 per cent in the quarter ended June 30, 2021.

As against a consolidated net profit of Rs 301 crore in the corresponding Q1 of previous fiscal 2020-21, the company registered the same at Rs 165 crore for Q1 of current fiscal year 2021-22.

APL's consolidated revenues from operations also fell marginally to Rs 1,326 crore in Q1 of FY22, from Rs 1,341 crore in the corresponding period last year.

"The India business grew exceptionally well and outpaced the Industry, we hope to see this momentum continuing due to the initiatives undertaken recently. The US business faced price erosion due to increased competition. However, our long term view of the US market remains intact," said Pranav Amin, Managing Director, Alembic Pharmaceuticals Limited on the financial results.

According to APL, the company's India branded formulations business grew strongly by 57 per cent to stand at Rs 481 crore during the quarter. While its non-US generics business grew by 13 per cent to Rs 197 crore, APL's US generics business fell by 38 per cent to Rs 369 crore during the quarter.

Meanwhile, Alembic Pharma's R&D spend  increased by 17 per cent during the quarter to Rs 167 crore, as compared to the said quarter last year.