Gland Pharma Q1 Net Profit Declines 26%, Shares Down

7 Aug 2024 , 11:22 AM

Gland Pharma Limited on Tuesday reported a net profit of ₹143.8 crore for the quarter ended June, down 26% from a year ago and 25% from a quarter ago. The revenue from operations was ₹1,401.7 crore during the quarter, up 16% from a year ago, but down 9% from Jan-Mar quarter.

The revenue growth, which aligns with the company’s projections, was primarily driven by the US market, the company said in a release.

The EBITDA of the pharmaceutical company declined 11% on year to ₹265.4 crore. EBITDA margin contracted to 19% from 25% a year ago and 23% a quarter ago, mainly affected by Cenexi.

Cenexi, a contract development and manufacturing company, had an EBITDA margin of (-)7% in Apr-Jun. The EBITDA margin, excluding Cenexi, was 29%, the company said.

The company said it expects positive EBITDA for Cenexi in Jan-Mar and a positive EBITDA for the next fiscal year, driven by increased revenue exceeding the €200 million threshold.

The revenue from the US rose 27% on year to ₹762.8 crore, while that from Europe increased 15% to ₹256.6 crore. India sales declined 19% on year to ₹52.7 crore.

The company launched eight molecules, including in the US market in Apr-Jun.

During the quarter, the company spent ₹48.9 crore on research and development, accounting for 5% of the revenue.

The company filed eight ANDAs, while seven ANDAs were approved during the quarter.

Gland Pharma shares were trading 2.4% lower at ₹2,056.20 on the National Stock Exchange.