Alkem Laboratories Q3 results: Net profit rises 5.2% to Rs 625 crore

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Alkem Laboratories on Friday reported a 5.2 per cent year-on-year (Y-o-Y) rise in its consolidated net profit for the December quarter (Q3 FY25) to Rs 625 crore, up from Rs 595 crore in the same period last year.

 

The company’s revenue from operations increased to Rs 3,374 crore in Q3 FY25, a marginal 1.5 per cent Y-o-Y rise from Rs 3,324 crore in Q3 FY24.

 

The company’s muted revenue growth is attributed to a Y-o-Y drop in international sales, even as there was growth in India sales.

 

Alkem’s international sales fell by 6.2 per cent in the December quarter to Rs 960.5 crore, whereas its India sales saw a 5.9 per cent rise to Rs 2,364.9 crore, contributing 71.1 per cent to its total sales.

 

In the international market, the company’s United States (US) business recorded sales of Rs 634 crore in the December quarter, a 7.3 per cent drop from Rs 683.3 crore. It contributed 19.1 per cent to the overall sales in Q3 FY25.

 

Similarly, its sales from other international markets such as Latin America, Australia, and Europe saw a 4 per cent drop to Rs 326.5 crore, contributing 9.8 per cent to overall sales.  ALSO READ: LIC Q3 FY25 results: Net profit increases 17% to Rs 11,056 crore

 

At the operating level, Alkem’s earnings before interest, tax, depreciation, and amortisation (Ebitda) rose to Rs 759.4 crore, with an Ebitda margin of 22.5 per cent in the December quarter, compared to Rs 707.6 crore and 21.3 per cent, respectively, in the same period last financial year.

 

Commenting on the company’s performance, Vikas Gupta, chief executive officer (CEO) of Alkem, said that by concentrating on higher-margin offerings, better aligning with market needs, and implementing cost-saving strategies to reduce inefficiencies, the company has seen growth in its Ebitda margins.

 

“Within the domestic market, our focus is on expanding the presence of our flagship brands and strategically enhancing our portfolio. Looking ahead, we are confident that these initiatives will continue to drive sustainable growth and strengthen our market position,” he added.

 

The company also announced its agreement to acquire a 100 per cent stake in Adroit Biomed through a binding term sheet dated February 7, 2025.

 

“The transaction is proposed to be effected through a share purchase agreement to be executed between the parties, and the acquisition is to be completed on or before April 1, 2025,” Alkem said in a regulatory filing.

 

Similarly, the company announced that its wholly owned subsidiary, Alkem Medtech, intends to acquire a 100 per cent stake in implant maker Bombay Ortho Industries, with both companies executing a binding offer outlining the terms and conditions of the acquisition.

 

On Friday, Alkem Laboratories’ share price declined 1.93 per cent, closing at Rs 5,154.90 on the Bombay Stock Exchange (BSE).