India's Alembic Pharma's quarterly profit drops on tax expense

Alembic Pharmaceuticals

06/05/2025 09:51

May 6 (Reuters) - Indian drugmaker Alembic Pharmaceuticals ALEM.NS reported a 12% fall in fourth-quarter profit on Tuesday, hurt by a deferred tax expense that offset the impact of strong sales in its key U.S. and domestic markets.

The company's consolidated profit fell to 1.57 billion rupees (nearly $19 million) in the quarter ended March 31, from 1.78 billion rupees a year ago.

It recorded a deferred tax expense of 146.7 million rupees compared with a tax gain of 217.5 million rupees a year earlier. Its profit before tax climbed 5%.

Alembic Pharma's sales in the U.S. climbed 20%, while sales in India rose 8%.

This drove its overall revenue 17% higher to 17.70 billion rupees.

KEY CONTEXT

A large chunk of revenues for most Indian generic drugmakers comes from the U.S.

While fierce competition in North America's generic drugs market has been weighing on some firms' margins, generic drugmakers are also under threat from U.S. President Donald Trump tariff plans for the sector.

PEER COMPARISON

Estimates (next 12 months)
Analysts' sentiment
RIC
PE
EV/EBITDA
Revenue growth (%)
Profit growth (%)
Mean rating*
No. of analysts
Stock to price target**
Div yield (%)
Alembic Pharmaceuticals
ALEM.NS
23.80
14.75
11.24
34.59
Hold
8
0.85
1.21
Dr Reddy's Laboratories
REDY.NS
16.41
10.61
8.98
6.82
Hold
34
0.88
0.68
Cipla
CIPL.NS
24.11
15.33
8.56
3.96
Buy
32
0.95
0.84
Zydus Lifesciences
ZYDU.NS
19.38
13.19
6.06
-1.30
Hold
27
0.86
0.34

* The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

JANUARY TO MARCH STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 84.3825 Indian rupees

JANUARY TO MARCH STOCK PERFORMANCE https://tmsnrt.rs/3EY725V

 (Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))