Akums Drugs Reports Rs 60 Crore Profit in Q1 Results

Akums, the largest contract development and manufacturing organization (CDMO) in India, enjoys a dominant position in the local market. In the Indian CDMO market, Akums held a 9.3% market share by value in FY23, while in the Indian Pharmaceutical Market (IPM), the company held an 8.8% share by volume. Its market share by value rose to 10.% by FY24, accounting for a sizeable share of 30.2% by value in the domestic CDMO market. Operating fifteen cutting-edge facilities, Akums produces a modern range of dosage forms for various therapeutic segments. Spread over more than 60 dosage forms, Akums Drugs, and Pharmaceuticals Ltd. can produce 49.59 billion units annually. It has three API units and twelve formulation manufacturing units. Since its founding in 2004, Akums has quickly grown to become a leading supplier of integrated solutions for businesses with distinct growth and operational goals. Formulation development, bioequivalence studies, clinical trials, and obtaining Drug Controller General of India (DCGI) approvals for manufacturing and marketing novel fixed-dose combinations (FDCs) and molecules are just a few of the advanced services that the company provides.

Akums drugs Q1 FY25 results:

For the first quarter of the fiscal year 2024-2025 (Q1 FY25), Akums Drugs and Pharmaceuticals reported a 5.08% YoY increase in its revenue from operations. The pharmaceutical giant also orchestrated a turnaround, reporting a net profit of Rs 60.1 crore for the quarter in question. The company reported a Rs 188 crore loss in the first quarter of FY24. It had previously declared a loss of Rs 41.3 crore sequentially. In Q1 FY25, Akum’s operating revenue was Rs. 1019.1 crore. The company’s revenue increased by 7.93% in the previous quarter. YoY, the EBITDA margin increased by 21.1%.

The revenue of the CDMO segment, which generates 93% of adjusted EBITDA and 77% of total revenue, increased by 5.6% YoY to Rs. 782 crore this quarter. This increase was mainly due to a 13.9% increase in sales volume. EBITDA growth in the branded and generic formulations segment more than doubled year over year, rising from Rs. 7 crore to Rs. 17 crore. Additionally, the revenue of the Active Pharmaceutical Ingredients (API) segment grew by 82.6% annually. Net debt dropped to Rs 212.8 crore, and the debt-to-equity ratio improved to 0.25 times.

Managing Director words for Q1 FY25:

As per the Q1 FY25 results operations and capitalize on our strengths in the CDMO segment, Sanjeev Jain, Managing Director of Akums Drugs & Pharmaceuticals, stated that the new injectable facility of Akums Healthcare commenced commercial production on August 22, 2024. 362 million units can be produced annually at this facility. The board of directors of the company have given their approval to the proposal to open two new production facilities in Jammu.

Conclusion: Akums Drugs and Pharmaceuticals Ltd. reported a consolidated profit increase of 60%. However, with the new injectable facility, Akums Healthcare is expected to impact Akums’ net profit in the next quarter.

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