Alkem Laboratories Limited — Q3 FY25
Alkem reported Q3 FY25 revenue of INR 3,374 crore (+1.5% YoY) and EBITDA margin of 22.5% (+7.3% YoY), driven by cost optimization and focus on higher-margin offerings.
bullish
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 answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Asked about INR 70 crore overhead expenses and revised EBITDA margin guidance.
Asked by Saion Mukherjee, Nomura
Management reaffirmed old guidance despite higher YTD margin, citing Q4 seasonality without specifics.
no revised guidance givendeferred to Q4 seasonality
Read the exchange
Question
I think in the last call you mentioned that there would be some overhead expenses of around INR 70-odd crores. Has those expenses started to come through? And secondly, you had guided for 19% EBITDA margin for the full year. In nine months, it's 21.6%. So it seems like you are on course to sort of beat that number. So if you can give a revised guidance for fiscal 25.
Vikas Gupta, CEO
On the overall margins, I would say we are pretty much on track for the guidance that we had given earlier. ... we should be around 19% guidance. We continue with that guidance.
Answered
High priority
Asked about high-value launches in US and GLP-1 plans in India.
Asked by Saion Mukherjee, Nomura
Management provided specific product names and timelines for both US and GLP-1.
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Question
Are you looking at any low-competition, high-value launches over the next 12 months? And also, do you have any plans with respect to GLP-1 in India?
Vikas Gupta, CEO
We should be amongst the first wave of players who would come in with GLP-1. ... In the US, we have got approval for sacubitril valsartan. ... the market should open up by July, and we should be there on day one.
Answered
Medium priority
Asked about forex-related charges in other expenses.
Asked by Kunal Dhamesha, Macquarie
Management clearly explained forex loss is in other income, not other expenses, and quantified the loss.
Read the exchange
Question
Is there any forex-related charge or anything that is baked in?
Vikas Gupta, CEO
Other expense is not impacted by any forex loss in quarter three. All the losses on account of forex have been booked under other income. So there was a loss of around INR 20 crore because our exposure in Chile is high.
Partial answer
High priority
Asked about GLP-1 manufacturing strategy and India growth outlook.
Asked by Kunal Dhamesha, Macquarie
Management gave a vague answer on manufacturing but provided detailed India growth outlook.
declined to share manufacturing details
Read the exchange
Question
The GLP-1, while we are expecting it to be in wave one, in terms of manufacturing, how are we positioned? Fully integrated, partnered? And a broader question on India growth that has remained subdued for us.
Vikas Gupta, CEO
With regards to semaglutide, I think we are fully prepared. I cannot divulge where we will manufacture, what we will do, but I can tell you we are fully prepared with our strategy to get to the market.
Answered
Medium priority
Asked about underperformance in pain and cardiac therapies in India.
Asked by Rashmmi Shetty, Dolat Capital
Management explained pain underperformance due to price corrections and acknowledged cardiac is not a focus area.
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Question
Earlier we used to basically be very strong in the pain segment, but we have underperformed this entire year. Also, in your cardiac and dermatology therapy, we are underperforming the market. So what are the challenges over here?
Vikas Gupta, CEO
As far as pain is concerned, last year, we had taken certain price corrections in our portfolio. ... When it comes to cardiac, we have never been a strong cardiac player. ... wherever we are present, we are going pretty strong.
Answered
High priority
Asked about US business growth drivers and price erosion.
Asked by Rashmmi Shetty, Dolat Capital
Management quantified price erosion and explained growth is from supply normalization, not new launches.
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Question
Any quarter-on-quarter improvement in the US growth is due to any launch? And if you can also comment on the price erosion in the US market for your portfolio.
Vikas Gupta, CEO
Price erosion is to the tune of around 5%, though in the NRV basis because we had some forex gains because of dollar, it's 2.5%. But if you look at it's backed by more of our supply getting regularized.
Partial answer
High priority
Asked about Q4 EBITDA margin contraction possibility.
Asked by Rashmmi Shetty, Dolat Capital
Management acknowledged possible contraction but did not quantify, citing R&D spend uncertainty.
no specific margin guidance given
Read the exchange
Question
Quarter four FY24 EBITDA margin was around 13.7%. So even if I take no expansion and a flat margin, still our average EBITDA margin goes beyond 19%. So is it fair to understand that quarter four EBITDA margin, there would be a contraction YOY?
Vikas Gupta, CEO
There may be a slight contraction, but while we will try, we are still in the quarter. ... we may be a shade lesser than last year as far as our margin expansion is concerned.
Answered
Medium priority
Asked about US filings and launches in Q3.
Asked by Amlan Das, Nomura
Management provided specific numbers for filings done and expected.
Read the exchange
Question
Have you done any filings in this quarter? What is the number of filings, YTD?
Vikas Gupta, CEO
Three filings we have done so far in this year and total till Q3, and we are expecting another five to happen in Q4.
Answered
Medium priority
Asked about Bombay Ortho acquisition and its future.
Asked by Amlan Das, Nomura
Management explained strategic rationale and provided market size context.
Read the exchange
Question
Regarding Bombay Ortho, I've seen that you recorded for around INR 147 crores, which is a turnover around INR 5 crores. So how do you expect this business to pan out in the near future?
Vikas Gupta, CEO
This particular acquisition gives us a manufacturing capability ... will allow us to reduce our cost of production ... to capture good market share over the next five years in the value segment of ortho hip and knee replacements.
Answered
Medium priority
Asked about trade generics business size and growth trajectory.
Asked by Neha Manpuria, Bank of America
Management provided exact revenue numbers for trade generics.
Read the exchange
Question
How big is our trade generics business?
Vikas Gupta, CEO
The last quarter was around INR 488 crores. INR 488 crores for quarter three. And at YTD level, it is INR 1,378 crores.
Partial answer
High priority
Asked about semaglutide launch strategy and competitive advantage.
Asked by Madhav Marda, Fidelity
Management gave generic answer about market opportunity but did not reveal Alkem's specific differentiation.
declined to share specific strategy details
Read the exchange
Question
What is the right to win for any player? Is it manufacturing capability or prescriber access?
Vikas Gupta, CEO
We are looking at a big opportunity in the market, and I don't think any one player will be able to service the entire market fully. ... It's both. It's the ability to have your own product with good relationships with the prescribers.
Answered
Medium priority
Asked about Pen G price rise impact and forex net position.
Asked by Madhav Marda, Fidelity
Management quantified Pen G price increase and explained forex net positive with sensitivity.
Read the exchange
Question
Has there been a rise in Pen G prices recently, and if there has, how do we anticipate impact from that? And just on the Forex appreciation, is it net positive or negative from Alkem's perspective?
Vikas Gupta, CEO
PEN G, we see in the last two months, the price is going up. There is around 20%-25% price increase. ... Our international business is around INR 4,000 crores. So definitely, it is positive for us because our export is higher than our import.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Trade generics Q3 revenue INR 488 crores | ₹488 cr | ₹3,374 cr | Understated vs filing |
| Trade generics YTD revenue INR 1,378 crores | ₹1,378 cr | ₹3,374 cr | Understated vs filing |
| Enzene Pune B2B sales INR 200 crores, expected INR 300 crores for FY25 | ₹300 cr | ₹3,374 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.