Alkem Laboratories Ltd, a leading pharmaceutical company, has announced a remarkable 76.83% increase in its consolidated net profit for the second quarter ended September 30. The company reported a net profit of Rs 614.89 crore, compared to Rs 347.72 crore in the same period last year.
This impressive growth can be attributed to lower raw material costs and a decrease in the intensity of price erosion in the US market. Alkem Laboratories’ consolidated revenue from operations also witnessed a significant rise, reaching Rs 3,440.17 crore compared to Rs 3,079.37 crore in the previous year.
Despite marginally higher expenses of Rs 2,797.66 crore this quarter, as compared to Rs 2,727.71 crore in the same period last year, the company remains optimistic about its performance. According to Sandeep Singh, the Managing Director of Alkem Laboratories, the second quarter builds on the momentum gained in the first quarter. He highlightes gross margin enhancements, lower raw material costs, reduced price erosion in the US market, and increased operating leverage as contributors to improved EBITDA margins.
While the domestic growth was subdued due to the sporadic monsoon, Alkem Laboratories experienced significant traction in the domestic market during September, and anticipates continued momentum in the upcoming quarter. The company’s India sales increased by 5% to Rs 2,327.8 crore.
Alkem Laboratories also enjoyed robust performance in both the US and non-US markets. Sandeep Singh expressed satisfaction with the company’s international sales, which grew by 27.1% to Rs 1,054.2 crore from Rs 829.1 crore in the same quarter last year.
Singh also emphasized the impressive performance of Alkem’s biosimilars portfolio, particularly with the addition of Enzene’s latest product, Ranibizumab. The company now offers a total of 7 biosimilar products and has achieved significant traction in the domestic biosimilars market.
Looking ahead, Alkem Laboratories is committed to maintaining its momentum and further improving operational performance. The company remains optimistic about its future success and aims to build on its recent achievements.
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