The company's total revenue during the quarter under review grew 30 per cent year-on-year (YoY) at Rs 1,207 crore against Rs 927 crore in the corresponding quarter of previous year. Earnings before interest, taxes, depreciation, and amortization (EBITDA) margin expanded 900 basis points to 28 per cent from 19 per cent in the previous fiscal.
Last week, Alembic Pharma said its joint venture, Aleor Dermaceuticals, had received establishment inspection report (EIR) for its formulation facility at Karkhadi in Gujarat. Earlier this month, the company announced that the US Food and Drug Administration (USFDA) classified the company’s general oral solid formulation facility located at Panelav as Voluntary Action Indicated (VAI).
According to analysts at JM Financial Institutional Securities, with Alembic entering the last leg of its capex plan, most investment blocks for driving sustainable growth in the US in the medium term are in place. The domestic business is back on a double-digit growth trajectory after six quarters of muted performance.
With the impact of the withdrawal of stockiest promotions and portfolio rationalization now behind, Alembic’s domestic business is best positioned to grow faster than the market given the low FY20 base, significant scope for improvement in MR productivity and the increasing traction in the acute portfolio. Rhizen Pharma, Alembic’s associate entity, is expected to start contributing meaningfully in FY21 with its first out-licensed product expected to be filed during the year, the brokerage firm said in their pharma sector report. It has ‘buy’ rating on the stock with 12 month target price of Rs 960 per share.
At 09:45 am, Alembic Pharma was trading 3 per cent higher at Rs 872 on the BSE, against 0.36 per cent decline in the S&P BSE Sensex. A combined 130,000 shares have changed hands on the NSE and BSE so far.