Akums Drugs and Pharmaceuticals reported its fiscal first quarter earnings with profit at Rs 61.21 crore in comparison to a loss of Rs 187.43 crore recorded during the corresponding quarter of previous financial year. It posted revenue from operations at Rs 1019.11 crore, up 5.1 per cent as against Rs 969.89 crore during the same period of FY24. The adj EBITDA margins grew by 21.1 per cent YOY to 12.7 per cent. The company said that its debt to equity improved to 0.25 times with net debt at Rs 212.80 crore.
Sanjeev Jain, Managing Director of Akums Drugs & Pharmaceuticals Ltd, said, “Our Q1 results show our ongoing efforts to optimize our operations and capitalise on our strengths in the CDMO segment. We are committed to driving sustainable growth across all our business segments and delivering value to our stakeholders.”
The company’s CDMO segment which accounts for 77 per cent of total revenue and 93 per cent of the Adj EBITDA, grew to Rs 782 crore, up 5.6 per cent YoY. This, it said, was driven by strong growth in sales volume of 13.9 per cent. Segment EBITDA also saw margin expansion of 106 bps to 15.5 per cent, growing 13.4 per cent YoY to Rs 121.20 crore on the back of steady improvement in capacity utilization and better product mix.
Branded and Generic Formulations segment more than doubled its EBITDA YOY, growing to Rs 17.10 crore from Rs 7.40 crore. This was driven by improved margins of branded domestic and exports business and curtailed losses in trade generics business.
The API segment saw revenue improvement of 82.6 per cent, while segment EBITDA margins improved to -17.4 per cent from -23.0 per cent in Q1FY24 as the company continues to strive to achieve break even in this segment.
The new Injectable Facility housed in Akums Healthcare Ltd started commercial production on 22nd August 2024, with a capacity of 362 million units annually, it stated. Further, the board of directors approved a plan to set up two production facilities in Jammu at an overall investment of Rs 265 crore. These will be multi-dosage facilities across pharmaceutical and nutraceutical products.
Sandeep Jain, Managing Director, Akums Drugs & Pharmaceuticals Ltd, said, “The launch of our injectable facility and the Jammu expansion are key steps in our strategy to enhance our production capabilities. These developments, coupled with our ongoing efforts in R&D and innovation, are aligned with our endeavor to respond effectively to the evolving demands of our clients and the healthcare industry.”
Furthermore, the company also announced the appointment of Amrut Medhekar as the Chief Executive Officer-CDMO Business. He will report to Sanjeev Jain and Sandeep Jain, Managing Directors of the company. Amrut Medhekar brings over 27+ years of rich pharmaceutical experience and has an extensive experience in strategic planning, profit & loss management, building a highly engaging & productive team, digitization and budgetary control.
From: financialexpress
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