Akums Drugs and Pharmaceuticals (AKUMS) Q1 24/25 earnings summary

Executive summary

• Achieved consolidated revenue growth of 5.1% year-over-year to INR 1,019 crores in Q1 FY25, with adjusted EBITDA up 12% and PAT margin improving to 5.6%.

• Board approved unaudited standalone and consolidated financial results for the quarter ended 30 June 2024, with limited review by statutory auditors and no qualifications reported.

• CDMO business remains the core, contributing over 75% of revenues, with a 30%+ market share and 1,500+ clients, including 26 of the top 50 Indian pharma companies.

• Appointment of Mr. Amrut Medhekar as CEO for the CDMO business, effective 24 August 2024.

• Investment of INR 225 crores to set up manufacturing facilities in Jammu & Kashmir through a wholly owned subsidiary, leveraging a government industrial promotion scheme.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹10,191.13 million, up from ₹9,698.86 million in Q1 FY24 (5.1% growth).

• Adjusted EBITDA increased from INR 108 crores to INR 121 crores, with margin improving from 11% to 12.7%.

• PAT margin improved from 3.9% to 5.6%, with PAT rising from INR 38 crores to INR 57 crores.

• Standalone net profit for Q1 FY25 was ₹418.75 million, compared to a net loss of ₹1,896.73 million in Q1 FY24.

• Basic and diluted EPS for Q1 FY25 stood at ₹2.93 (standalone) and ₹4.21 (consolidated).

Outlook and guidance

• Management expects continued volume and margin growth, but refrains from providing specific revenue guidance due to API price volatility.

• IPO completed post quarter-end, with shares listed on NSE and BSE on 6 August 2024; updates on IPO proceeds utilization to be provided in the next reporting period.

• New injectable facility expected to ramp up over the next 24-36 months, with meaningful contributions from FY25-26.

• Limited seasonality, but Q2 and Q3 are typically stronger due to monsoon and winter demand.