Akums Drugs and Pharmaceuticals Ltd, India’s largest contract development and manufacturing organization (CDMO), announced a 16% increase in its profit after tax (PAT) for the second quarter ending September 30, 2024.
For the quarter, Akums reported an adjusted PAT of ₹667 million, marking a 16.2% rise compared to the previous quarter and an 8.9% increase year-over-year. The company’s adjusted EBITDA margin stood at 12.9%, while the adjusted PAT margin was 6.4%.
Total income for the quarter reached ₹10,466 million, showing a modest growth of 2.0% from the last quarter but an 11.9% decline compared to the same period last year. Adjusted EBITDA amounted to ₹1,347 million, up by 3.0% quarter-over-quarter but down by 28.0% year-over-year.
In the half-yearly results ending September 30, 2024, Akums reported an adjusted PAT of ₹1,240 million, a significant 25.4% increase. The half-year total income was ₹20,722 million, reflecting a 4.3% decrease compared to the previous year. Adjusted EBITDA for the half-year was ₹2,654 million, a 10.1% decline from the prior year. The company also reported a cash surplus of ₹3,406 million.
Segment-wise, the CDMO division saw its EBITDA rise by 1.3% quarter-over-quarter to ₹1,227 million but fell by 34.8% compared to last year. The Branded and Generic division performed strongly, with EBITDA increasing by 5.2% quarter-over-quarter and soaring by 116% year-over-year. However, the Active Pharmaceutical Ingredients (API) segment reported a negative EBITDA of ₹143 million for the quarter and ₹264 million for the half-year.
Sandeep Jain, Managing Director of Akums, commented, “Our focus continues to be on the development of innovative products and platforms, exploring more markets towards our larger objective of driving profitable growth. Q2 business performance reflects the muted volume demand and low API prices. We remain committed to our long-term vision of being a global CDMO player.”
Sanjeev Jain, another Managing Director, added, “Short-term volatility aside, we continue to see strong secular demand for outsourced drug development and manufacturing. We will continue to invest in building world-class capabilities to help our clients launch new formulations and therapies, and drive their growth. The company is taking long-term measures to further strengthen its leadership position in the CDMO space.”
Despite facing challenges such as reduced income and declining EBITDA in certain segments, Akums remains focused on expanding its global footprint and enhancing its service offerings to maintain its leading position in the pharmaceutical manufacturing sector.
