Alkem Labs - Inventory Provision Mars Q4; Long-Term Outlook Remains Intact: Dolat Capital

A health worker wearing a protective mask works in a lab  (Photographer: Eva Marie Uzcategui/Bloomberg)

Alkem Labs - Inventory Provision Mars Q4; Long-Term Outlook Remains Intact: Dolat Capital

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Dolat Capital Report

Alkem Laboratories Ltd.'s Q4 impacted due to inventory provision (Rs 800 million) in the U.S., primarily Ibuprofen.

Adjusting this Ebitda margins are at ~17% versus expectation of 18%.

U.S. sales (down 10% YoY at $74 million) was impacted due to:

  1. Seasonality

  2. Loss in market share of acute products

  3. Lower launches

While FY21 Ebitda margins were positive (~9-10%) for the U.S., Q4 FY21 saw negative margins on account of the write-off.

India business (up 17% YoY) was marginally lower versus expectations due to delay in hospital products growth.

Click on the attachment to read the full report:

Dolat Capital Alkem Laboratories Q4FY21 Result Update.pdf


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