Alkem Lab declines as bottom line growth lags growth in top line in Q2

Alkem Laboratories was down 1.44% to Rs 1,614.20 at 14:49 IST on BSE after consolidated net profit rose 6% to Rs 282.83 crore on 18.6% growth in total income from operations to Rs 1638.30 crore in Q2 September 2016 over Q2 September 2015.

The result was announced during market hours today, 11 November 2016.

Meanwhile, the S&P BSE Sensex was down 592.75 points or 2.15% at 26,924.93.

On BSE, so far 12,000 shares were traded in the counter as against average daily volume of 5,704 shares in the past two weeks. The stock hit a high of Rs 1,680 and a low of Rs 1,568.20 so far during the day. The stock had hit a record high of Rs 1,852.95 on 29 September 2016. The stock had hit a record low of Rs 1,175 on 2 May 2016.

The large-cap company has equity capital of Rs 23.91 crore. Face value per share is Rs 2.

The company's earnings before interest, taxation, depreciation and amortization (EBITDA) rose 21.5% to Rs 310.50 crore in Q2 September 2016 over Q2 September 2015. EBITDA margin improved to 18.9% in Q2 September 2016, from 18.5% in Q2 September 2015.

Commenting on the company's performance, Prabhat Agrawal, CEO, Alkem, said the company has delivered a robust growth in its India business largely driven by strong execution of its market strategies. The company's international business too delivered a healthy growth during the quarter mainly driven by its US business, he said. Alkem's ongoing efforts towards margin improvement also are yielding results as evident from year on year (YoY) improvement in its gross and EBITDA margins despite the regulatory price cuts, Agrawal said. Alkem looks forward to build on this momentum, he added.

Alkem Laboratories is a pharmaceutical company with global operations, engaged in the development, manufacture and sale of pharmaceutical and nutraceutical products.

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