Operating profit margin has slumped from 26.19% to 21.71%, leading to 13.64% rise in operating profit to Rs 592.86 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 25.13% to 27.93%.   Purchase of finished goods cost fell from 16.18% to 12.78%.   Employee cost increased from 18.39% to 19.27%.   Other expenses rose from 15.96% to 18.55%.   

Other income fell 15.17% to Rs 46.65 crore.  Provision for interest fell 24.80% to Rs 12.86 crore.  

Provision for depreciation rose 5.54% to Rs 70.53 crore.  

Profit before tax grew 12.86% to Rs 556.12 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 75.89 crore, compared to Rs 69.56 crore.  Effective tax rate was 13.65% compared to 14.12%.

Minority interest increased 926.27% to Rs 12.11 crore.  Net profit attributable to owners of the company increased 10.93% to Rs 468.12 crore.  

Promoters' stake was 58.84% as of 30 June 2021 ,compared to 62.43% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Alkem Laboratories has increased 6.24% to Rs 8865.01 crore.  

Operating profit margin has jumped from 17.66% to 21.91%, leading to 31.83% rise in operating profit to Rs 1,942.39 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 24.86% to 26.03%.   Purchase of finished goods cost fell from 16.83% to 15.63%.   Employee cost increased from 17.56% to 17.62%.   Other expenses fell from 23.57% to 19.60%.   

Other income rose 123.77% to Rs 233.21 crore.  Provision for interest fell 9.44% to Rs 58.92 crore.  Loan funds rose to Rs 1,670.21 crore as of 31 March 2021 from Rs 1,577.42 crore as of 31 March 2020.  Inventories rose to Rs 2,312.44 crore as of 31 March 2021 from Rs 1,818.82 crore as of 31 March 2020.  Sundry debtors were lower at Rs 1,607.21 crore as of 31 March 2021 compared to Rs 1,649.36 crore as of 31 March 2020.  Cash and bank balance rose to Rs 1,990.45 crore as of 31 March 2021 from Rs 1,092.21 crore as of 31 March 2020.  Investments rose to Rs 332.78 crore as of 31 March 2021 from Rs 261.39 crore as of 31 March 2020 .  

Provision for depreciation rose 8.63% to Rs 274.58 crore.  Fixed assets declined from Rs 2,872.53 crore as of 31 March 2020 to Rs 2,627.21 crore as of 31 March 2021.  Intangible assets increased from Rs 398.45 crore to Rs 559.05 crore.  

Profit before tax grew 46.22% to Rs 1,842.10 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 224.33 crore, compared to Rs 110.48 crore.  Effective tax rate was 12.18% compared to 8.77%.

Minority interest increased 47.26% to Rs 32.75 crore.  Net profit attributable to owners of the company increased 40.63% to Rs 1,585.02 crore.  

Equity capital stood at Rs 23.91 crore as of 31 March 2021 to Rs 23.91 crore as of 31 March 2020.  Per share face Value remained same at Rs 2.00.  

Promoters' stake was 60.16% as of 31 March 2021 ,compared to 65.88% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 1,264.90 crore for year ended March 2021 from Rs 585.08 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 194.91 crore, compared to Rs 363.09 crore during the year ended March 2020.  

Other Highlights

In Q1FY22, the Company's India sales grew by 65.3% YoY. This growth was mainly driven by acute therapies like anti-infectives, vitamins/minerals/nutrients, gastrointestinal and pain management which witnessed a good volume growth partly helped by higher COVID- 19 cases during the quarter.

In Q1FY22, the Company's International sales grew by 0.6% in which US sales declined by 9.3% on YoY basis.

Company has a healthy Balance Sheet with net cash of Rs 980 crore as on June 30, 2021.

India sales contributed 70.7% to total sales, US sales contributed 22.4% and Other International Market sales contributed 6.9% in Q1FY22.

Management Commentary: Sandeep Singh, Managing Director, Alkem said, "We have had a good start to the financial year with a strong growth in our Domestic business, even after adjusting for the low base of the last year. This was driven by robust demand across our established therapies of antiinfectives, gastrointestinal, vitamins & minerals and pain management. Our US business also registered a healthy sequential growth during the quarter. We continue to track good progress in the biosimilar segment with our subsidiary Enzene Biosciences recently receiving marketing authorization for two new products for the India market, taking the total product approvals to three."