Gland Pharma Q1: Profit Falls, but Beats Expectations

8 Aug 2023 , 09:07 AM

The first-quarter profit of Gland Pharma Ltd. declined but still beat analysts’ expectations.

According to a filing with the exchange, the net profit of the Hyderabad-based manufacturer of generic injectables dropped 15% year over year to Rs 194 crore in the three months ending in June. Comparable estimates from analysts tracked by Bloomberg total Rs 170 crore.

According to the company’s exchange filing, ‘37% contributed from the acquisition of Cenexi and 4% from the base business’ of the 41% increase in revenues. Additionally, according to the filing, the company’s gross margin increased both annually and sequentially as a result of higher margins from its US base business portfolio and Cenexi’s margin profile.

Sequentially, the profit increased 147%.

The United States’ revenue was Rs 602 crore, a 6% decrease from the June quarter of the previous year. European sales increased by 432%. However, they were up 21% when Cenexi was excluded.

The June quarter of last year saw an increase of 3% in Canada, Australia, and New Zealand, among other core markets. India contributed 5% of overall revenues and saw a 29% increase in sales.

Revenue from the rest of the world’s market increased by 193% and made up 24% of the overall revenue.

According to the filing, ‘the acquisition of Cenexi was responsible for the growth in the Europe and ROW markets.’

‘The business recovery efforts following a difficult prior year are producing positive results. In the filing, Managing Director and Chief Executive Officer Srinivas Sadu remarked, ‘I would like to commend our team for their tireless efforts in launching 33 product SKUs during this quarter.

According to him, the results of the most recent U.S. FDA inspections at three of his sterile facilities ‘demonstrate our commitment to being a quality-focused and regulatory-compliant company.’

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