Motilal Oswal: Alkem Laboratories’ Big Q1 Beat; Profits Ahead Of Expectations

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Alkem Laboratories Ltd. exhibited strong traction in U.S. generics and significant savings on opex in Q1 FY21, which more than offset the YoY decline in domestic formulation (DF) sales, resulting in record high quarterly earnings.The pandemic has showcased strong brand recall for Alkem’s products in the DF segment and superior execution in U.S. generics.Q1 FY21 revenues grew approximately 7% YoY to Rs 19.8 billion (versus estimate Rs 18.2 billion).International business reported sales growth of approximately 33% YoY to Rs 7.9 billion, led by revenue growth of (a) 38% YoY in the U.S. to Rs 6.7 billion (33% of sales), and (b) approximately 9% YoY in other International markets to Rs 1.2 billion (6% of sales).Domestic formulation sales declined approximately 5.5% YoY to Rs 11.6 billion (58% of sales), due to Covid-19 related decline in patients visiting clinics. Gross margin expanded by approximately 140 basis point YoY to 63.4% due to better product mix.Ebitda margin improved further by approximately 1,140 basis point YoY to 25.6% (versus estimate 15.7%), due to lower other costs (down 920 basis point as % of sales) and improved gross margins..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: Alkem Laboratories’ Big Q1 Beat; Profits Ahead Of Expectations

Motilal Oswal: Alkem Laboratories’ Big Q1 Beat; Profits Ahead Of Expectations

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