Sensex Ends 274 Points Lower; Dr Reddy's Laboratories And Cipla Among Top Nifty Losers

The company's consolidated profit after tax (PAT) declined 45.4% year on year (YoY) to Rs 1.6 bn on the weak performance of US business.

The pharmaceutical company had posted a PAT of Rs 3 bn in the first quarter of the year 2021.

Earnings before interest, taxes, depreciation and amortization (EBITDA) margins declined 1,258 basis points (bps) YoY to 17.8% due to higher other expenditure.

The company's revenues declined 1.1% YoY to Rs 13.3 bn with strong growth in domestic formulations being offset by a 38.1% YoY decline in US sales to Rs 3.7 bn.

Domestic formulations grew 57.2% YoY to Rs 4.81 bn.

The acute and specialty segments grew faster than the represented pharmaceutical market, the company said.

The total expenses incurred by the company for the quarter ended 30 June 2021, stood at Rs 11.5bn. It was Rs 9.8 bn for the year-ago period.

Pranav Amin, Managing Director of Alembic Pharmaceuticals, said,

  • The Indian business grew exceptionally well and outpaced the industry, we hope to see this momentum continuing due to the initiatives undertaken recently.

    The US business faced price erosion due to increased competition. However, our long-term view of the US market remains intact.

Meanwhile, Alembic Pharma's research and development (R&D) spend increased by 17% during the quarter to Rs 1.7 bn, as compared to the said quarter last year.

Alembic Pharma's share price ended the day down by 11.4% on the BSE.

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Moving on to news from the IPO space...

Glenmark Life Sciences IPO Subscribed 2.21 Times on Day 1

The initial public offering (IPO) of Glenmark Life Sciences has been subscribed 2.21 times on 27 July, the first day of bidding.

View single page >> |

Disclosure: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research ...

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