Gland Pharma on May 22 reported 145 percent rise in consolidated net profit at Rs 192.4 crore for the January-March period of FY24 from Rs 78.7 crore in the year-ago period.
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The company’s revenue came in at Rs 1,537.5 crore, up 96 percent from the year-ago quarter of Rs 785 crore.
The company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at Rs 358.7 crore, up from Rs 168.4 crore a year ago. EBITDA margins came in at 23 percent in the March quarter as against 21 percent a year ago.
R&D expenses of the company in the quarter was Rs 436 million (3.7 percnt of revenue). The company had 4 ANDAs filed, 6 ANDAs approved in the quarter.
The Board recommended a final dividend of Rs 20 per equity share for the fiscal year ending March 31st, 2024, subject to the approval of its shareholders.
Q4 revenue declined primarily due to operational disruptions and breakdowns which caused high order backlogs, the company said. Delayed tech transfer further impacted Q4 revenue, as new business was intended to replace phasing-out business.
The next two years are important for meaningful results, the company said. Gland Pharma is exploring acquisitions, co-development, and partnership opportunities to accelerate growth, it added. Overall, biologics are a key driver for our future growth.
Commenting on the results, Srinivas Sadu, MD & CEO of Gland Pharma, said, “We are delighted to close out the last quarter and FY24 with positive results. This year marked a significant rebound for our base business, and we began an exciting new chapter as we completed our first international acquisition, Cenexi, in Europe.
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Despite the dynamic business landscape, we’ve shown resilience and delivered a performance that positions us well for continued growth and success. We see continued momentum in this segment and are optimistic about its future opportunities. The strategic rationale behind Cenexi’s acquisition remains intact, and we expect it to deliver significant value as we move forward.”
Management comments on Cenexi
Cenexi is currently in a transitional phase, facing short-term operational challenges that are impacting performance. The Company is facing frequent breakdowns, and a high proportion of low-margin products.
Gland initiated a comprehensive transformation plan to address operational challenges, with short-term, medium-term, and long-term solutions. Active investments are being made in asset upgrades, capacity rebalancing, and future-ready capabilities.
Strong order book, established customer base, ongoing tech transfer projects, and promising growth opportunities.
Outlook: Confident in Cenexi’s medium- to long-term potential despite delays in realizing the acquisition’s full potential. • The immediate goal is to increase Cenexi’s profitability and deliver high-teen margins in the medium to long term.
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Set up in Hyderabad in 1978, Gland Pharma Ltd has grown over the years from a contract manufacturer of small volume liquid parenteral products to become one of the largest and fastest growing injectable-focused companies, with a footprint across 60 countries, including the US, Europe, Canada, Australia and India.
