Alkem Laboratories posts 87.85% increase in PAT, sales in India up by 5%

Pharmaceutical company Alkem Laboratories on Tuesday posted an 87.85 per cent year-on-year (y-o-y) increase in profit after tax (PAT) for the quarter ending on September 30, 2023, reaching Rs 620.52 crore. The company also posted a 12.09 per cent increase in its consolidated revenue from operations, which came in at Rs 3,440.17 crore, in contrast to Rs 3,079.37 crore in Q2FY23. This increase in PAT can be attributed to the reduction in total expenses and the return of deferred tax (tax credit) of Rs 126 crore as compared to Rs 32 crore last year.

On a sequential basis, the company exhibited a 16.26 per cent increase in revenue and a 116 per cent increase in profit after tax.

This quarter, the company experienced a 5.0 per cent y-o-y increase in its sales in India, with total sales amounting to Rs 2,327.8 crore, compared to Rs 2,216.1 crore in Q2FY23.

The company’s international sales grew 27.1 per cent y-o-y. The total international sales for the quarter reached Rs 1,054.2 crore. Within the international market, sales in the United States amounted to Rs 767.5 crore, marking a Y-o-Y growth of 27.1 per cent. Additionally, sales in other international markets reached Rs 286.6 crore, posting a y-o-y growth of 27.3 per cent.

The same day, Alkem Laboratories’ share price rose 5.34 per cent, ending the day’s trade at Rs 4,026 apiece on the Bombay Stock Exchange (BSE).

Alkem Laboratories produces branded generics, generic drugs, active pharmaceutical ingredients (APIs), and nutraceuticals in acute and chronic therapeutic areas, which are marketed in Indian and international markets.