Pharma || Hospitals || Diagnostics : Industry perspective

Alembic Pharma –

Q4 and FY 24 concall and results highlights –

Q4 outcomes –

Revenues – 1517 vs 1406 cr, up 8 pc
EBITDA – 260 vs 204 cr ( up 29 pc, margins @ 17 vs 14 pc )
PAT – 178 vs 153 cr, up 17 pc

FY 24 outcomes –

Revenues – 6229 vs 5653 cr
EBITDA – 932 vs 682 cr ( margins @ 15 vs 12 pc YoY )
PAT – 616 vs 342 cr

FY 24 Sales breakup –

India branded – 35 pc – 2200 cr ( includes the Veterinary business ) – grew by 7 pc in FY 24

US generics – 28 pc – 1730 cr – grew by 10 pc in FY 24

RoW formulations – 17 pc – 1052 cr – grew by 23 pc in FY 24

APIs – 20 pc – 1246 cr – grew by 7 pc in FY 24

India business –

Has grown at 11.4 pc CAGR for last 4 yrs
15 pc is under NLEM
Company’s 4 brands have sales > 100 cr
Total MRs @ 5000 +
16 pc of India sales come from Veterinary segment and 30 pc from acute therapies
Alembic is 18th largest Pharma company in India

Veterinary business ( operating in livestock and poultry segment ) has grown at a CAGR of 25 pc for last 4 yrs – now @ 355 cr / yr

US business –

7 products launched in FY 24 taking the total products launched to 147
25+ product launches planned in FY 25
No major Capex planned in next few yrs
Company’s base US business is about $ 200 million. Aiming to build up on this base

RoW business –

Has grown @ 21 pc CAGR for last 4 yrs
Company exports to – Europe, Canada, Australia,Brazil and South Africa
Currently ramping up operations in Chile, Middle East

APIs –

Supplying APIs to 60+ countries globally
( however, main focus is on regulated markets )
Has grown @ 15 pc CAGR for last 4 yrs
Future capacity expansion is on track

R&D expenses for FY 24 @ 480 cr @ 7.6 pc of sales

Current manufacturing base –
5 facilities – Formulations
2 facilities – APIs

Gross Debt now at 430 cr vs 620 cr on 31 Mar 23. Cash on books @ 120 cr

Company’s domestic business growth was mainly led by – gynae, veterinary, opthal, metabolic, GI, Cardio segments

Growth in anti-infectives, respiratory were tepid in the domestic mkts – pulling down overall domestic growth for the company

Expecting good ramp up and operational efficiencies to kick in for the US business in FY 25

Expecting strong growth momentum to continue for RoW business ( ie > 20 pc growth or thereabouts )

Confident of outgrowing the IPM for FY 25

Capex plan for FY 25 @ 300 cr or so – mainly towards de-bottlenecking and maintenance

As US business ramps up, company level EBITDA margins may to go 20 pc kind of levels due better utilisation of facilities ( provided there is no steep price erosions in US )

Disc : looking for dips in the stock price to start accumulating, biased, not SEBI registered, not a buy/sell recommendation