Alkem Laboratories Gets Income Tax Orders Worth Rs 375 Crores

Alkem Laboratories Ltd. on Wednesday said it has received income tax orders worth Rs 375 crores for the assessment years 2020-21 and 2022-23. The order was received by the company on Tuesday.

The orders have disallowed part of the deduction claims, and Rs 375.14 crores have been disputed by the IT authority, according to the exchange filing. However, the company added that no amount is payable due to the utilisation of available MAT credit.

Alkem Laboratories consolidated net profit rose 14% in the second quarter to Rs 702 crores. Net profit growth is led by a two-times increase in other income at Rs 134 crore versus Rs 63 crore last year. Revenue for the quarter ending in September fell by 0.7% to Rs 3,415 crore against Rs 3,440 crore reported in the same quarter last year.

Ebitda was up 0.9% at Rs 753 crore in comparison to Rs 746 crore in the same quarter the previous year. Margin rose to 22% against 21.7% in the same period last year.

India sales for the quarter reached Rs 2,461 crore, reflecting a year-on-year growth of 5.7%. Domestic sales contributed 72.8% of total sales in the second quarter, up from 68.8% in the same period last year, showing an increased focus on the domestic market.

According to IQVIA (SSA) data, the company registered a growth of 6.3% year-on-year during the July-September period, slightly below the Indian pharmaceutical market growth rate of 7.6%.

International sales amounted to Rs 918.1 crore, reflecting a year-on-year decline of 12.9%. The US market contributed 17.7% to total sales in the second quarter, while sales from other international markets accounted for 9.5% of total sales.

Shares of the company fell 1.27% on Tuesday to Rs 5,409.65 apiece as compared to a 0.09% fall in BSE Sensex.