ALKEM · Healthcare
Alkem Laboratories Ltd. reported revenue of ₹3,032 cr for April to June 2024, +2.2% on the year and +3.3% on the quarter.
Operating profit (EBITDA) was ₹609 cr, a margin of 20.1%, +698 bps on the year and +639 bps on the quarter. Operating costs grew −6.0% against revenue growth of +2.2%, so more of each rupee of sales reached operating profit.
Net profit was ₹550 cr, +91.0% on the year and +80.9% on the quarter, with earnings per share of ₹45.60. Profit before other income, one-offs and tax grew 73.9%, so 17 points of the headline growth came from outside the core business. The tax rate of 11% is in line with its recent average.
On earnings per share of ₹171.81 over the last four quarters, the stock at ₹5,114.00 trades at 29.8 times trailing earnings.
Written from the quarterly statements. The filing read adds the balance sheet and cash flow, the auditor's review, segment results, one-off items line by line and what management said on the call.
Headline profit grew much faster than core profit. What made up the difference?
Source: Quarterly statements
Margin rose sharply on flat revenue. Which cost fell, and will it stay down?
Source: Quarterly statements
Could not run on this quarter: Exceptional items that recur, Cash behind the profit, Receivables against sales, Inventory against sales, Borrowing while holding cash, Auditor's review or audit report, IPO money used as stated, Related-party transactions, Exits, postponements, restatements, Promoter pledges and allotments, Earlier promises against delivery, When the results were filed. Most need the filing read (balance sheet, cash flow, auditor, disclosures).
Net profit a year ago, each driver's change, and net profit now. Blue added profit, red took it away.
| Q2 FY24 | Q3 FY24 | Q4 FY24 | Q1 FY25 | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | ₹3,440 cr | ₹3,324 cr | ₹2,936 cr | ₹3,032 cr | ₹3,415 cr | ₹3,374 cr | ₹3,144 cr | ₹3,371 cr | ₹4,001 cr | ₹3,737 cr | ₹3,603 cr | ₹3,740 cr |
| YoY | — | — | — | +2% | −1% | +2% | +7% | +11% | +17% | +11% | +15% | +11% |
| EBITDA margin | 21.7% | 21.3% | 13.7% | 20.1% | 22.0% | 22.5% | 12.4% | 21.9% | 23.0% | 22.2% | 14.3% | 20.5% |
| Other income, % of PBT | 1% | 6% | 21% | 19% | 17% | 13% | 37% | 19% | 12% | 12% | 15% | 20% |
| Exceptional items | — | — | — | — | — | — | — | — | — | — | — | — |
| Tax rate | 5% | 8% | 17% | 11% | 10% | 12% | 18% | 13% | 13% | 16% | 40% | 32% |
| Net profit | ₹615 cr | ₹604 cr | ₹304 cr | ₹550 cr | ₹702 cr | ₹641 cr | ₹322 cr | ₹668 cr | ₹779 cr | ₹653 cr | ₹251 cr | ₹521 cr |
| YoY | — | — | — | +91% | +14% | +6% | +6% | +21% | +11% | +2% | −22% | −22% |
| Core profit YoY | — | — | — | +74% | +1% | +4% | −14% | +25% | +23% | +8% | +43% | −0% |
| EPS | ₹51.90 | ₹49.76 | ₹24.55 | ₹45.60 | ₹57.60 | ₹52.34 | ₹25.58 | ₹55.56 | ₹63.99 | ₹53.19 | ₹19.78 | ₹43.49 |
| Flags | · | · | · | 1 | ✓ | ✓ | 2 | ✓ | ✓ | ✓ | ✓ | ✓ |
Each quarter is read with the same rules. Balance-sheet and cash checks run on half-year and annual quarters; filing-read checks run where a read exists.
Alkem Laboratories Ltd. reported revenue of ₹3,032 cr (+2.2% on the year) and net profit of ₹550 cr (+91.0% on the year) for April to June 2024.
Profit before other income, exceptional items and tax moved +73.9% on the year, against +91.0% for reported profit.
1 check raised a question: Headline profit grew much faster than core profit. What made up the difference?
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