Alkem Laboratories Limited — Q1 FY24
Alkem Laboratories reported Q1 FY2024 revenue growth of 15.2% YoY, driven by strong international business crossing INR 1,000 crore for the first time.
neutral
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
83%Questions answered1Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Guidance on double-digit growth and 16% EBITDA margin
Asked by Saion Mukherjee, Nomura
Management directly revised revenue guidance and reaffirmed EBITDA margin guidance.
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Question
How should we think about that, and are you sort of revising any of these numbers?
Sandeep Singh, Managing Director
On the guidance of revenue growth side, I think double-digit growth currently seems challenging, but it'll be very high single digits for sure... on the EBITDA margins, there we feel confident of achieving that.
Answered
High priority
Sustainability and drivers of international business growth
Asked by Saion Mukherjee, Nomura
Management confirmed no one-offs and provided color on broad-based growth.
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Question
If you can give some color as to what is driving, are there any one-time opportunities?
Amit Ghare, President International Business
There's no particular market per se, which has contributed to this growth... no one-time businesses here.
Evasive
Medium priority
Capital allocation plan for INR 24 billion net cash
Asked by Foram Parekh, BNK Securities
Management did not provide any new details on capital allocation.
no specifics givenreferred to past discussions
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Question
Can you just share on your capital allocation plan? Like, how do you intend to utilize this cash?
Sandeep Singh, Managing Director
Capital allocation plan is the same as we have already discussed in the last few quarters. Nothing has changed.
Answered
High priority
Easing of price erosion in US market
Asked by Foram Parekh, BNK Securities
Management provided specific data on pricing deflation trends.
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Question
Are we seeing any easing of price erosion or stability in price erosion?
Amit Ghare, President International Business
Yes, we have seen some easing of pricing pressure... pricing deflation was in single digits, though it was in higher single digits.
Answered
High priority
Possibility of expanding EBITDA margin guidance above 16%
Asked by Foram Parekh, BNK Securities
Management clearly stated no upgrade to margin guidance.
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Question
Do we not see us expanding our EBITDA margin guidance, you know, from 16% ±1%?
Sandeep Singh, Managing Director
No, no, absolutely not, ma'am... we are not upgrading our guidance what we gave last time.
Partial answer
Medium priority
Status of St. Louis facility shutdown and cost savings
Asked by Abdulkader Puranwala, ICICI Securities
Management gave qualitative update but did not quantify savings.
no quantification of cost savings
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Question
Have we completely shut down that in Q1? Is the cost savings now reflective into this 13% margin?
Sandeep Singh, Managing Director
A large part of it, but not all of it. Plant is on the winding up stage... We could potentially have a buyer or shut it down.
Answered
Medium priority
NLEM impact on Q1 numbers
Asked by Saurabh Kapadia, Sundaram Mutual Fund
Management explained the timing and magnitude of the price increase.
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Question
If you can talk about the NLEM impact on the Q1 numbers.
Rajesh Dubey, CFO
We already exercised that opportunity to increase our DPCO covered products price increase by 12.24%. In this quarter one, it has come later part of the quarter... expected to be there in quarter two.
Answered
Medium priority
CapEx for Q1 and additional investment in Enzene
Asked by Saurabh Kapadia, Sundaram Mutual Fund
Management provided specific CapEx number and confirmed guidance.
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Question
What was the CapEx for Q1, and what has been... any additional investment which has gone to Enzene?
Rajesh Dubey, CFO
CapEx for the quarter is somewhere close to INR 80 crore... We have already given guidance of INR 300 crore-INR 350 crore for entire year.
Partial answer
Medium priority
Progress on cost saving initiatives and INR 200-250 crore target
Asked by Damayanti Kerai, HSBC
Management did not quantify savings achieved in Q1.
no specific number given for this quarter
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Question
How you are doing there? For say, 2024, are you confident about achieving the entire savings?
Rajesh Dubey, CFO
Definitely, our cost saving exercise is going as per our plan... I don't think it will be INR 200 crore, but definitely we'll try to add maximum.
Answered
Medium priority
Current MR count and productivity for India business
Asked by Damayanti Kerai, HSBC
Management provided specific numbers for MR count and productivity.
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Question
If you can state the current MR count and your productivity for India business?
Rajesh Dubey, CFO
Total, we have now 12,000 representatives... Our productivity average at Alkem level is around 5.4.
Answered
High priority
Enzene top line for Q1 and full year guidance
Asked by Rashmi Shetty, Dolat Capital
Management provided specific Q1 and full year revenue numbers.
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Question
How much have we done in this quarter one?
Sandeep Singh, Managing Director
This quarter one, we did a sales of around INR 57 crore... I think this will be at close to INR 240 CR in the end of the financial year.
Answered
High priority
Breakdown of domestic growth into volume, price, new launches
Asked by Mehul Sheth, Axis Capital
Management provided specific percentage breakdown for growth drivers.
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Question
Can you break it down between the volume price and new launches, how the growth was?
Rajesh Dubey, CFO
The volume growth is close to 1%, new launches is 3.7, NRE is 2.3.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Revenue growth guidance revised to high single digits | 0% | 15.2% | Understated vs filing |
| EBITDA margin guidance of 16% reaffirmed | 16% | 13.1% | Overstated vs filing |
| Enzene Q1 revenue INR 57 crore | ₹57 cr | ₹2,968 cr | Understated vs filing |
| Enzene FY24 revenue guidance around INR 240 crore | ₹240 cr | ₹2,968 cr | Understated vs filing |
| Gross margin guidance 59%-59.5% | 59% | 13.1% | Overstated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.