Akums Drugs and Pharmaceuticals (AKUMS) Q3 24/25 earnings summary

Executive summary

• Secured a EUR 200 million long-term CDMO contract for the European market, with commercial supply commencing in 2027 and a EUR 100 million upfront payment expected soon.

• Approved unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2024, with no auditor qualifications.

• Expanded manufacturing capabilities with new facilities, R&D investments, and strategic partnerships in dermatology, metabolic, and wellness segments.

• Board approved incorporation of subsidiaries in the UK and Malta to enhance export business and register dossiers in its own name.

• Noted retirement of a long-serving board member and reconstitution of board committees.

Financial highlights

• Q3 consolidated income was INR 10,250 million, down 6.1% year-over-year; adjusted EBITDA rose to INR 1,359 million (13.3% margin), up from 11.1% in Q3 FY24.

• Adjusted PAT for Q3 FY25 was INR 664.81 million (6.5% margin), a 15.2% increase year-over-year.

• Free cash flow improved from negative INR 73 crore in Q2 to positive INR 50 crore in Q3; working capital reduced by INR 40 crore year-to-date.

• IPO proceeds of INR 6,373.7 million were primarily allocated to loan repayment, working capital, and acquisitions.

• EPS (consolidated, basic and diluted) for the quarter: ₹4.26; nine months: ₹13.21.

Outlook and guidance

• Revenue and EBITDA for FY 2025 expected to remain similar to the first three quarters, with H1 and H2 performance anticipated to be comparable.

• API segment targeted to break even within one to two years, with ongoing portfolio rationalization and focus on high-margin products.

• Expansion into European markets through new subsidiaries in the UK and Malta to drive export growth.

• Launches of in-licensed products in dermatology and metabolic segments are anticipated to drive future growth.

• Investment in R&D and manufacturing capacity to support future growth and innovation.