Akums Drugs and Pharmaceuticals Ltd., India’s largest contract development and manufacturing organization (CDMO), has announced its consolidated financial results for the quarter ending September 30, 2024, marking 16% increase in profit after tax (PAT) on sequential quarter-on-quarter basis.

For Q2, Akums reported a consolidated total income of Rs. 1,046.6 crore, representing a sequential growth of 2 per cent. Adjusted EBITDA was recorded at Rs. 134.7 crore, a 3% rise over the previous quarter, while the adjusted PAT stood at Rs. 66.7 crore, a 16% increase. The company’s adjusted EBITDA margin of 12.9 per cent and PAT margin of 6.4 per cent reflect operational efficiency and a focus on profitable growth.

However, the YoY comparison reflects the impact of lower API prices and fluctuating demand, which Akums remains optimistic will stabilize as it expands its footprint.

The company’s cash surplus position remains robust at Rs. 340.6 crore, which is instrumental in supporting further investment in R&D and expanding production and business capabilities.

Sanjeev Jain, Managing Director, also shared his views, stating, “Short term volatility apart, 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.”

Sandeep Jain, Managing Director, stated, “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”.