Alembic Pharma Q4 Results Review - Revenue Inline; Margins Remain Under Pressure: Nirmal Bang

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Nirmal Bang Report.Alembic Pharmaceuticals Ltd. reported a decent set of numbers for Q4 FY23, with revenue coming in line with our estimate and a beat on margins, driven by lower-than-expected marketing and promotional expenditure. Revenue growth was flat at Rs 14 billion (our estimate: Rs 14.2 billion), largely on account of U.S. business sales declining by 42.6%/18.1% YoY/QoQ to $43 due to a high base and persistent pricing pressure. However, this decline was offset by strong growth across other markets and active pharma ingredient business. India business grew by 9.1% YoY (excluding Covid 12% YoY) to Rs 4.9 billion, led by strong growth in both acute as well as specialty segments, and the company intends to outpace industry growth in FY24 through strong volume uptick. API business grew at a robust pace of 41.4% YoY to Rs 3.1 billion on the back of a better product mix and high offtake. Alembic Pharma expects this momentum to continue with 10-12% growth expectation in FY24, backed by a strong order book. Ebitda margin contracted by 491 bps to 15.1% due to lower gross margin and higher operating overheads on account of commercialization of new facilities. Alembic Pharma has guided for 15% Ebitda margin for FY24 as well..Click on the attachment to read the full report:.Alembic Pharma Q4 Review - Scale-Up In U.S. Generics Is The Key For Better Earnings Outlook: Motilal Oswal .DISCLAIMERThis report is authored by an external party. BQ Prime 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 author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Alembic Pharma Q4 Results Review - Revenue Inline; Margins Remain Under Pressure: Nirmal Bang

Revenue growth was flat largely on account of US business sales declining due to a high base and persistent pricing pressure.

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