Operating profit margin has declined from 25.41% to 22.30%, leading to 3.98% rise in operating profit to Rs 624.38 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 20.86% to 26.02%.   Purchase of finished goods cost fell from 16.21% to 15.35%.   Employee cost decreased from 17.97% to 16.64%.   Other expenses rose from 18.51% to 20.99%.   

Other income rose 18.06% to Rs 41.96 crore.  PBIDT rose 4.77% to Rs 666.34 crore.  Provision for interest fell 33.65% to Rs 11.97 crore.  Loan funds rose to Rs 1,731.25 crore as of 30 September 2021 from Rs 1,418.25 crore as of 30 September 2020.  Inventories rose to Rs 2,527.73 crore as of 30 September 2021 from Rs 1,981.83 crore as of 30 September 2020.  Sundry debtors were higher at Rs 1,801.75 crore as of 30 September 2021 compared to Rs 1,582.70 crore as of 30 September 2020.  Cash and bank balance rose to Rs 2,394.70 crore as of 30 September 2021 from Rs 1,437.40 crore as of 30 September 2020.  Investments rose to Rs 345.17 crore as of 30 September 2021 from Rs 273.93 crore as of 30 September 2020 .  

PBDT rose 5.89% to Rs 654.37 crore.  Provision for depreciation rose 3.69% to Rs 72.83 crore.  Fixed assets increased to Rs 2,836.91 crore as of 30 September 2021 from Rs 2,609.24 crore as of 30 September 2020.  Intangible assets declined from Rs 584.48 crore to Rs 397.67 crore.  

Profit before tax grew 6.17% to Rs 581.54 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 23.01 crore, compared to Rs 66.24 crore.  Effective tax rate was 3.96% compared to 12.09%.

Minority interest increased 51.01% to Rs 14.27 crore.  Net profit attributable to owners of the company increased 15.29% to Rs 544.26 crore.  

Equity capital stood at Rs 23.91 crore as of 30 September 2021 to Rs 23.91 crore as of 30 September 2020.  Per share face Value remained same at Rs 2.00.  

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

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Alkem Laboratories has increased 26.68% to Rs 5531.35 crore.  

Operating profit margin has declined from 25.96% to 22.01%, leading to 7.37% rise in operating profit to Rs 1,217.24 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 22.87% to 26.94%.   Purchase of finished goods cost fell from 16.15% to 14.11%.   Employee cost decreased from 18.13% to 17.91%.   Other expenses rose from 17.23% to 19.81%.   

Other income rose 12.11% to Rs 88.61 crore.  PBIDT rose 7.68% to Rs 1305.85 crore.  Provision for interest fell 29.34% to Rs 24.83 crore.  Loan funds rose to Rs 1,731.25 crore as of 30 September 2021 from Rs 1,418.25 crore as of 30 September 2020.  Inventories rose to Rs 2,527.73 crore as of 30 September 2021 from Rs 1,981.83 crore as of 30 September 2020.  Sundry debtors were higher at Rs 1,801.75 crore as of 30 September 2021 compared to Rs 1,582.70 crore as of 30 September 2020.  Cash and bank balance rose to Rs 2,394.70 crore as of 30 September 2021 from Rs 1,437.40 crore as of 30 September 2020.  Investments rose to Rs 345.17 crore as of 30 September 2021 from Rs 273.93 crore as of 30 September 2020 .  

PBDT rose 8.79% to Rs 1281.02 crore.  Provision for depreciation rose 4.59% to Rs 143.36 crore.  Fixed assets increased to Rs 2,836.91 crore as of 30 September 2021 from Rs 2,609.24 crore as of 30 September 2020.  Intangible assets declined from Rs 584.48 crore to Rs 397.67 crore.  

Profit before tax grew 9.34% to Rs 1,137.66 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 98.9 crore, compared to Rs 135.8 crore.  Effective tax rate was 8.69% compared to 13.05%.

Minority interest increased 148.17% to Rs 26.38 crore.  Net profit attributable to owners of the company increased 13.23% to Rs 1,012.38 crore.  

Equity capital stood at Rs 23.91 crore as of 30 September 2021 to Rs 23.91 crore as of 30 September 2020.  Per share face Value remained same at Rs 2.00.  

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

Cash flow from operating activities increased to Rs 832.12 crore for YTD ended September 2021 from Rs 775.69 crore for YTD ended September 2020.  Cash flow used in acquiring fixed assets during the YTD ended September 2021 stood at Rs 181.39 crore, compared to Rs 67.67 crore during the YTD ended September 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.  PBIDT rose 37.90% to Rs 2175.6 crore.  Provision for interest fell 9.44% to Rs 58.92 crore.  Loan funds rose to Rs 1,722.27 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 .  

PBDT rose 39.94% to Rs 2116.68 crore.  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 2,790.87 crore as of 31 March 2021.  Intangible assets declined from Rs 398.45 crore to Rs 395.39 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 Q2FY22, the Company's India sales grew by 25.9%, US sales fell by 2.6%, and Other International Markets sales grew by 27.5% compared to Q2 FY21.

In H1FY22, the Company's India sales grew by 42.7%, US sales fell by 6%, and Other International Markets sales grew by 40.2% compared to H1FY21.

R&D expenses in the quarter was Rs 1.4 billion at 5.0% of revenue from operations.

Management commentary: Sandeep Singh, Managing Director, Alkem said, "First six months of the financial year has been a very healthy period for the Company's India business with over 40% YoY growth mainly driven by the acute therapies. Even in chronic therapies and trade generic business, the Company continues to grow ahead of the market. In the US business, new product launches have helped to offset significant pricing pressure in the base business. Our continuous efforts towards cost optimization and driving process efficiencies are also showing good results with improvement in profitability."