Yash Gupta, Equity Research Associate, Angel Broking Ltd
“Alkem Laboratories reported a good set of numbers despite lockdown in Q1FY21. consolidated revenue from operations for Q1FY21 stood at ₹2,003.5 crores up by 8.3% YoY from ₹1,849.5 crores in Q1FY20, driven by strong growth in the US business which is up by 38.3%, from ₹481.7 Crore in Q1FY20 to ₹666.4 Crore in Q1FY21. Revenue from India Business down by 5.5%, from ₹1,222 Crore in Q1FY20 to ₹1155.0 Crore in Q1FY21. Gross margins stood at 63.4% in Q1FY21 up by 190 bps from 61.5% in Q1FY20. EBITDA for the quarter is up by 101.6% YoY to ₹533.2 Crores as compared to ₹264.5 Crores in Q1FY20 due to lower cost of materials and other expenses. Profit after tax for the quarter stood at ₹423.1 Crore up by 127% as compared to ₹187.2 Crore in Q1FY20.While the company posted above expected set of numbers for the quarter we believe that the margins expansion may not be sustainable in the future.”
Shares of Alkem Laboratories Ltd was last trading in BSE at Rs.2980.3 as compared to the previous close of Rs. 2863.9. The total number of shares traded during the day was 40705 in over 4894 trades.
The stock hit an intraday high of Rs. 3089.55 and intraday low of 2868. The net turnover during the day was Rs. 122038164.
