Alkem Laboratories Limited — Q4 FY24
Alkem Laboratories reported Q4 FY24 PAT of INR 294 crore, impacted by a deferred tax derecognition of INR 120 crore.
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.
92%Questions answered0Evaded / deflected12Questions auditedContradictedNumbers vs filing
Answered
High priority
Outlook for FY25 revenue growth and profitability.
Asked by Kunal Dhamesha, Macquarie
Management gave specific guidance: 10% revenue growth and stable margins.
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Question
Sir, would you like to provide any broad outlook for FY 2025 in terms of revenue growth and profitability?
Vikas Gupta, CEO
our revenue growth will be in line with the market growth... around 10% is what our revenue growth looks like for the coming financial year... In terms of gross margins, we maintain we will be within the range of both the gross margin as well as EBITDA as to what we are currently.
Partial answer
High priority
Will cost efficiency measures continue to improve EBITDA?
Asked by Kunal Dhamesha, Macquarie
Acknowledged potential improvement but offset by unspecified investments, no number given.
no quantified improvementoffset by investments
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Question
So the cost efficiency measures, will it kind of be positively impacting us going forward, or is it already baked into the improved gross margins?
Vikas Gupta, CEO
It's an ongoing process... I'm assuming that at a business unit level, our EBITDA might even improve as we move along. But there are certain investments... that is why I'm saying that our overall EBITDA at the corporate level... might still, I would maintain it where we are currently.
Answered
High priority
CapEx for FY25?
Asked by Kunal Dhamesha, Macquarie
Provided a specific range for CapEx.
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Question
On the data, what would be the CapEx for FY25?
Vikas Gupta, CEO
It will be to the tune of INR 600 crore-INR 700 crore.
Answered
High priority
Why keep EBITDA margin guidance similar to FY24 despite investments?
Asked by Neha Manpuria, Bank of America
Explained R&D increase as reason for stable margin guidance.
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Question
is there any other investment specifically that you're doing in R&D or MR expansion because of which we are keeping our EBITDA margin guidance as similar to what we have done in FY2024?
Vikas Gupta, CEO
on R&D, if you see this year, we have been at around 4.1%. But generally, we would like to keep it at 4.5%-5%... I'm forecasting the R&D spend somewhere within the range of 4.5%-5%.
Answered
High priority
Reason for India business decline YoY in Q4?
Asked by Neha Manpuria, Bank of America
Attributed decline to seasonality and base effect, no evasion.
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Question
It is surprising to see a decline year-on-year in the India business. Anything specific that you want to call out?
Vikas Gupta, CEO
my belief is that it's a one-off... IPM and the anti-infective market for Q4 has degrown... high base in Q4 of FY 2023, which saw a very good outbreak of flu.
Answered
High priority
How will domestic growth of 10% be achieved given NLEM portfolio?
Asked by Saion Mukherjee, Nomura Securities
Clearly stated reliance on volume growth and seasonal normalization.
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Question
when you think about growth next year at around 10%, given that you have a large NLEM portfolio where there is no price increase, are you banking on normalization of seasonal demand to get to this growth?
Vikas Gupta, CEO
To some extent, that. And I would say a strong volume growth because we have large feet on street... I'm banking on a strong volume growth that we will be driving as far as our business is concerned.
Answered
High priority
Reason for QoQ decline in US sales?
Asked by Rashmi Shetty, Dolat Capital
Provided two specific reasons: seasonality and supply issues.
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Question
on your U.S. business, the sales have come down significantly on a quarter-on-quarter basis... this quarter, we were below that, around $74 million-$75 million. So just want to know, this was purely seasonality, or there are any other issues?
Vikas Gupta, CEO
I would say it's on two accounts. One is some of seasonality. And second, even some of the supply issues that we had in U.S. business, which was, I would say, one-off, that impacted us for one or two months.
Answered
Medium priority
Number of US launches in FY24 and planned for FY25?
Asked by Rashmi Shetty, Dolat Capital
Provided specific numbers for launches and contribution.
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Question
How many launches we have done this year, and how many are we planning for next year?
Vikas Gupta, CEO
So this year has been just two to three launches... we are looking at in FY25, overall, we are looking at around six to seven launches... looking at around 7%-8% growth contributed by the new product launches in the U.S. market.
Answered
Medium priority
Contribution of chronic portfolio and sales team productivity?
Asked by Damayanti Kerai, HSBC Securities and Capital Markets
Provided specific percentages and productivity numbers.
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Question
Can you update us on what is the contribution coming from chronic portfolio, and then what is the productivity in terms of sales team on chronic and acute team?
Vikas Gupta, CEO
today, we have around 17%-18% business that comes out of chronic, and I expect it to cross 20% in the near term to mid term... for FY24, we have an overall group-level productivity at around INR 4.5 lakhs. From chronic, it's around INR 3.5 lakhs.
Partial answer
Medium priority
Trade generic business contribution and margin trend?
Asked by Kunal Dhamesha, Macquarie
Gave contribution range but only qualitative margin improvement.
no exact margin numbersqualitative only
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Question
what was the contribution of trade generic business this time around?
Vikas Gupta, CEO
we are, I think, between the range of around 20%... In fact, it has remained stable... we are improving with every passing year.
Answered
Medium priority
Tax rate reset timing and effective rate for FY27?
Asked by Madhav Marda, Fidelity
Provided specific tax rate ranges for near term and FY27.
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Question
if you could just remind us on the tax rate reset when that kicks in and what could be the effective tax rate maybe for FY27.
Nitin Agrawal, CFO
for next two years, we see our tax rate in the range of 13%-15%. For FY27, the second tax benefit will be over. So our tax rate will definitely increase, and it will be in the range of, say, 25% from there onwards.
Answered
Medium priority
Supply chain penalties in Q4 and outlook for US business?
Asked by Bharat Celly, Equirus Securities
Provided specific penalty amount and outlook for improvement.
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Question
what were those during fourth quarter, if you can call out that number?
Nitin Agrawal, CFO
That was INR 30 crore for fourth quarter... we see that situation getting eased with every passing quarter.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| US business Q4 sales around $74-75 million | 74 | 2,936 | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.