Companies

Alembic Pharma sees steady business from opportunities in India

Rutam Vora Ahmedabad | Updated on January 23, 2019 Published on January 23, 2019

Pranav Amin, Managing Director, Alembic Pharma

Looks to capitalise on spot opportunities in the US and Europe

Pharma major, Alembic Pharmaceuticals Limited on Tuesday informed that the company will continue to have steady business growth in the Indian market, while it looks at the US and European market more as opportunity-based.

Speaking to Businessline, Pranav Amin, Managing Director, Alembic Pharmaceuticals said, "We had a phenomenal growth in the US and European markets. This is mainly based on some opportunities that we got due to supply shortages in that market. Our supply chain could capitalise on this opportunity. The success in US is based on such opportunities, we aren't sure if it continues in the next quarter or not."

But the outlook appears promising for the company as both of its API and formulations facilities were approved by the US drug regulator, US Food and Drug Administration (USFDA). "We are seeing robust market growth in our ROW segment, which includes Europe, Australia and Canada," he said.

Quarterly Results

"In India the business is growing at a better rate of 11 per cent on year-to-date basis, which is typically seen at 8-10 per cent. So, this growth is pretty good and provides a steady business," Amin said after announcement of company's financial numbers for the third quarter ended December 2018.

Company posted net profit of RS 162 crore up 25 per cent on year-on-year basis with net sales growing at 21 per cent to Rs 1018 crore for the quarter under review.

Company's India formulations business for the quarter grew by 4 per cent to Rs 365 crore, while API business registered a growth of 14 per cent to Rs 205 crore for the quarter.

For the nine-month period company's net profit jumped by 47 per cent to Rs 467 crore on 32 per cent growth in revenues to Rs 3008 crore.

"Our India businesss will continue to grow at a steady pace, while we are investing significantly both on Capex and R&D. We expect by fiscal 2022-23, we will see significant jump after commissioning of our facilities in the injectibles and other segments," added Amin.

Company currently spends about 11 per cent of the sales for R&D, one of the highest in the industry. Alembic Pharmaceuticals shares gained about 1 per cent on Tuesday to close at Rs 596 on NSE.

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Published on January 23, 2019
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