Alkem Labs Q3 Results: Net profit rises just 6% to ₹641 crore, total income flat; stock declines 4%

Pharma stock Alkem Labs announced its results for the quarter ended December 2024 (Q3FY24) on Friday, February 7.

The company’s consolidated net profit rose 6 percent year-on-year (YoY) to ₹641 crore from ₹604 crore in Q3FY24. Sequentially, profit fell almost 9 percent from 702 crore in the previous quarter (Q2FY25).

Total income for the quarter stood at ₹3,467 crore, a marginal 1.4 percent increase from ₹3,417.5 crore in the same period last year. On a quarter-on-quarter (QoQ) basis, revenue declined 2.3 percent from ₹3,549 crore in Q2FY25.

For the nine months ending December 2024 (9MFY25), Alkem reported an over 25 percent YoY rise in net profit to ₹1,893 crore, compared to ₹1,507 crore in 9MFY24. Total income for the period increased merely 2 percent to ₹10,168.5 crore from ₹9,954.4 crore in the previous year.

Dividend Announcement

The company declared an interim dividend of ₹37 per equity share on a face value of ₹2 per share for the financial year 2024-25. The interim dividend will be paid on or after February 28, 2025.

Mananement Commentary

Commenting on the Q3FY25 results, Dr Vikas Gupta, CEO of Alkem, said, “We are pleased to share that the actions we have taken to improve profitability continue to deliver positive results. By concentrating on higher-margin offerings, better aligning with market needs, and implementing cost-saving strategies to reduce inefficiencies, we are seeing growth in our EBITDA margins. Within the domestic market, our focus is on expanding the presence of our flagship brands and strategically enhancing our portfolio. Looking ahead, we are confident that these initiatives will continue to drive sustainable growth and strengthen our market position.

Acquisition of Bombay Ortho Industries

The company also announced that its wholly owned subsidiary, Alkem Medtech Private Limited, intends to acquire a 100 percent stake in Bombay Ortho Industries Private Limited. A Binding Offer outlining the acquisition terms was executed on February 7, 2025. The transaction, valued at ₹147 crore, is expected to be completed by June 30, 2025, subject to customary closing conditions.

Stock Price Trend

Post the earnings announcement, the stock lost 4 percent to hit its intra-day low of ₹5045.35. 

The stock is now almost 22 percent away from its peak of ₹6,440.00, hit in September 2024, whereas, it has advanced over 14 percent from its 52-week low of ₹4,409.90, recorded in June 2024.

In the last one year, the pharma stock has advanced just 2.5 percent and has added over 1 percent in February so far. This rise comes after 5 straight months of losses. It fell 10 percent in January, 0.15 percent in December, 2.4 percent in November, 4.5 percent in October, and 2 percent in September.