Alembic Pharmaceuticals Ltd shares have dipped 8 per cent to Rs 840 on the BSE in intra-day trade on Tuesday after the company reported disappointing numbers for the quarter ended June 2021 (Q1FY22), with consolidated profit after tax (PAT) declining 45.4 per cent year-on-year (YoY) to Rs 164.50 crore on the weak performance of US business. The pharmaceutical company had posted a PAT of Rs 301 crore in Q1FY21. Ebitda (earnings before interest, taxes, depreciation, and amortization) margins declined 1,258 basis points (bps) YoY to 17.8 per cent due to higher other expenditure.

The company’s revenues declined 1.1 per cent YoY to Rs 1,326 crore, with solid growth in domestic formulations being offset by a 38.1 per cent YoY deny in US sales to Rs 369 crore. Domestic formulations grew 57.2 per cent YoY to Rs 481 crore. The acute and specialty segments grew faster than the represented pharmaceutical market, the company said.

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“India business grew exceptionally well and outpaced the industry, and we hope to see this momentum continuing due to the initiatives undertaken recently,” the management said. The US business faced price erosion due to increased competition; however, the long-term view of the US market remains intact, it added.

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