 "Akums Drugs")
In the Q1 of FY 24, the firm had posted a loss of Rs 188 crore. Image: Facebook
Akums Drugs and Pharmaceuticals has reported a 5.08 per cent year-on-year (Y-o-Y) increase in its revenue from operations for the first quarter of financial year 2024-25 (Q1FY25) while the pharma major also scripted a turnaround and reported a net profit of Rs 60.1 crore during the quarter under review.
In the Q1 of FY 24, the firm had posted a loss of Rs 188 crore. Sequentially, it had reported a loss of Rs41.3 crore.
Akum’s revenue from operations in Q1FY25 came in at Rs 1019.1 crore, a rise of 5.08 per cent Y-o-Y.
On a sequential basis, the company exhibited a 7.93 per cent increase in revenue. The Ebitda (earnings before interest, tax, depreciation, and amortisation) margins rose 21.1 per cent Y-o-Y.
Commenting on the results, Sanjeev Jain, Managing Director of Akums Drugs & Pharmaceuticals, said, “Our Q1 results show our ongoing efforts to optimise 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.”
Akums Healthcare new injectable facility commenced commercial production on August 22, 2024. This facility has an annual capacity of 362 million units. The company’s board of directors has approved a plan to establish two new production facilities in Jammu.
These facilities, dedicated to pharmaceutical and nutraceutical products, will require a total investment of Rs2,65 crore. The expansion into Jammu aims to further enhance Akums’ manufacturing capabilities and market reach.
Speaking on the company’s future plans, Sandeep Jain added, “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 endeavour to respond effectively to the evolving demands of our clients and the healthcare industry.”
This quarter the company’s Contract Development and Manufacturing Organisation (CDMO) segment, which accounts for 77 per cent of total revenue and 93 per cent of adjusted EBITDA, increased by 5.6 per cent in revenue Y-o-Y to Rs782 crore, primarily driven by a 13.9 per cent increase in sales volume.
The Branded and Generic Formulations segment witnessed a more than doubled EBITDA growth Y-o-Y, increasing from Rs7 crore to Rs17 crore. This improvement was primarily attributed to higher margins in both domestic and export markets for branded formulations and a reduction in losses from the trade generics business.
The Active Pharmaceutical Ingredients (API) segment also increased its revenue by 82.6 per cent Y-o-Y. The debt-to-equity ratio improved to 0.25 times, and net debt decreased to Rs 212.8 crore.
First Published: Aug 26 2024 | 12:56 PM IST