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Alkem Labs Q4 PAT rises 13% to Rs 189 cr

Consolidated profit before tax stood at Rs 235.30 in Q4 March 2020, rising 18.4% from Rs 198.81 crore in the same period last year. Total tax expenses increased 54% to Rs 43.76 crore in Q4 March 2020 over Q4 March 2019.

Consolidated EBITDA rose 29.6% to Rs 303 crore in Q4 March 2020, from Rs 2,33.80 crore in Q4 March 2019. EBITDA margin improved to 14.8% in Q4 March 2020 from 12.6% in Q4 March 2019.

During the quarter, India sales stood at Rs 1,257.60 crore (up 3.3%) and International sales stood at Rs 752.30 crore (up 23.4%).

Alkem Laboratories said R&D expenses for the quarter ending March 2020 was at Rs 125.30 crore or 6.1% of revenue from operations compared with Rs 139.20 crore at 7.5% of revenue from operations in Q4 March 2019.

Commenting on the results, Sandeep Singh, managing director, Alkem said, "Adjusting for the impact of delay in transportation due to lockdown which led to a lower booking of sales in the month of March 2020, our India business delivered a healthy double digit growth during the quarter and the year. Our US business also complimented well with a robust growth on the back of new product launches and market share gains. The company's EBITDA margins improved by more than 200 bps during the quarter and the year, thereby highlighting our ongoing efforts towards cost optimization and process improvement. While FY21 has started on a challenging note due to COVID-19, we are positive that the inherent business strengths that we have built over the years in terms of strong brands, marketing and distribution infrastructure and H&U investments, will help us to navigate through these testing times and deliver a sustainable and a profitable growth."

The board recommended a dividend of Rs 3 per equity share and fixed 11 August 2020 as a record date.

Alkem Laboratories is engaged in the development, manufacture and sale of pharmaceutical and neutraceutical products. The company operates through two segments: pharmaceutical and investing.

Shares of Alkem Laboratories fell 1.92% to Rs 2395.95 on Friday. Meanwhile the S&P BSE Sensex closed 306.54 points or 0.9% higher at 34,287.24.