ALKEM - Alkem Laboratories Limited Share Price

Major Questions and Answers from Q&A Section

Question 1:

Neha: "As we look into the second half and probably FY27, do we think Alkem can maintain this growth momentum that we have seen?"

Vikas Gupta: "I believe we will continue to outperform the market by at least 100 to 150 basis points. Our growth is backed by strong launches and key brands performing well. We expect to maintain a double-digit growth rate, assuming an 8% to 8.5% market growth."

Question 2:

Neha: "Given the first half performance, do you think there are upside risks to the margin guidance?"

Vikas Gupta: "We anticipate an operational expenditure increase due to the U.S. CDMO plant, which we now expect will incur between INR50 crores to INR60 crores per quarter starting in Q3. Despite this, we're optimistic about reaching an EBITDA margin of 19.5% to 20% for the full year."

Question 3:

Damayanti: "Can you update us on the sales from the Medtech and Adroit businesses in Q2?"

Vikas Gupta: "In Medtech, we reported approximately 900 knee replacements, amounting to around INR2.5 crores in revenue. For Adroit, our sales maintained a run rate of about INR15 crores for the quarter."

Question 4:

Bansi Desai: "What has driven the sequential rise in other expenses?"

Nitin Agrawal: "The increase is largely due to heightened marketing expenses in Q2, which are generally the highest for the year. Additionally, the integration of new subsidiaries contributed to these increased expenses."

Question 5:

Kartik: "Did the GST impact your top line or bottom line?"

Vikas Gupta: "The GST revision did impact us with a one-time cost of INR10 crores to INR12 crores and an ongoing cost impact from our Sikkim facility expected to be around INR50 crores to INR60 crores in H2. Overall, we view the GST move positively."

Question 6:

Saion Mukherjee: "Regarding U.S. CDMO revenues, you mentioned INR20 crores per quarter. Are you already booking revenues?"

Vikas Gupta: "We have recorded about INR40 crores to INR45 crores in revenues from CDMO. For the upcoming quarters, we anticipate INR20 crores per quarter, and our target is to achieve INR300 crores in the next 12 to 18 months."

Question 7:

Madhav: "Could you provide the constant currency growth in the ex-U.S. markets?"

Vikas Gupta: "In the ex-U.S. markets, we experienced a constant currency growth of about 28%. Our reported growth of 32% accounts for a currency gain of approximately 4% to 4.5%."

Question 8:

Tushar Manudhane: "What is the expected effective tax rate for FY27?"

Nitin Agrawal: "We expect the effective tax rate to be in the range of 35% to 38% for FY27, as we will be coming out of MAT after March '26."

These questions capture key concerns about growth, margins, new business segments, impacts of regulatory changes, and operational expenditures, reflecting the current dynamics affecting Alkem Laboratories.