Alkem Laboratories reported a significant increase in its consolidated net profit, which surged four-fold to Rs 293 crore for the quarter ending in March 2024. This is a substantial improvement compared to the net profit of Rs 71 crore reported for the same quarter in the previous financial year. The company attributed the impact on its profit for the fourth quarter of the previous financial year to the derecognition of deferred tax of Rs 120 crore. Adjusted for this item, the profit growth for the March quarter of the current financial year would have been 54 percent.
Revenue from operations also showed growth, climbing to Rs 2,936 crore for the fourth quarter, compared to Rs 2,903 crore in the same period of the previous year. For the entire financial year ending on March 31, 2024, the company reported a net profit of Rs 1,796 crore, a significant increase from Rs 984 crore in the previous financial year. Revenue from operations for the last fiscal year rose to Rs 12,667 crore, compared to Rs 11,599 crore in the 2022-23 fiscal year.
Alkem’s CEO, Vikas Gupta, highlighted the company’s improved performance, particularly in Q4FY24, attributing it to significant gross margin enhancements backed by lower raw material costs and lower intensity of price erosion in the US market. Additionally, the company’s board has recommended a final dividend of Rs 5 per share of Rs 2 each for the financial year ended on March 31, 2024. On Wednesday, the company’s shares settled 0.93 percent higher at Rs 5,265.10 apiece on the BSE.