Gland Pharma’s net profit increases by more than 100% to Rs 192.4 crore in March quarter

23 May 2024 , 11:38 AM

Gland Pharma, a Hyderabad-based drugmaker owned by China’s Fosun Pharma, more than doubled its net profit to ₹192.4 Crore in Q4FY24, boosted by a rebound in the US, Europe, and other regulated markets, despite operational challenges at its acquired contract development and manufacturing organisation (CDMO) business in Europe.

The company declared its first post-listing dividend of ₹20 per equity share in FY24. Gland Pharma earned a net profit of ₹78.7 Crore in the same period the previous year.

In the fourth quarter of FY24, revenue from operations increased to ₹1,537.5 Crore. The earnings before interest, tax, depreciation, and amortisation (EBITDA) increased 113% year on year (YoY) to ₹358.7 Crore. In the fourth quarter of FY24, the EBITDA margin increased by 200 basis points year on year to 23%.

The net profit and EBITDA margin excluding ex-Cenexi, a contract manufacturing firm that Gland acquired for more than ₹1,000 Crore early last year, were three times higher, at ₹316 Crore and 34%, respectively.

Gland stated that Cenexi sales decreased in Q4FY24 principally due to operational delays, breakdowns that resulted in substantial order backlogs, and delayed tech transfer.

Despite difficulties in realising the full potential of the transaction, Gland remains bullish on Cenexi’s medium- to long-term prospects.

Gland’s revenue increased 56% to ₹5,665 Crore in FY24, while its net profit fell 1% to ₹772.5 Crore. The EBITDA margin fell 400 basis points to 24%.

The US business rose 83% year on year to ₹878.4 Crore, while the Cenexi purchase aided Europe in posting a seven-fold sales increase of ₹268.5 Crore. Canada, Australia, and New Zealand increased 58% to ₹57.8 Crore, while India decreased 19% to ₹52.6 Crore. The rest of the world (RoW) sales increased by 64% to ₹280 Crore.

At around 11.25 AM, Gland Pharma was trading 4.92% higher at ₹1,881.20 per share, against the previous close of ₹1,793.05 on NSE. The counter touched an intraday high and low of ₹1,989.90, and ₹1,861.20, respectively.

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