Gland Pharma Reports ₹192 Crore PAT in Q3, Anticipates Strong FY24 Despite Operational Challenges

15 Feb 2024 , 11:22 AM

Gland Pharma, a prominent player in the pharmaceutical industry, announced its financial results for the December quarter, revealing a consolidated Profit After Tax (PAT) of ₹192 Crore. This figure marked a decline from the previous year’s corresponding quarter when the PAT stood at ₹232 Crore. Despite this dip, the company showcased robust performance in revenue from operations, which surged to ₹1,545 Crore for the October-December period compared to ₹938 Crore a year ago.

It’s important to note that the results for the quarter and the cumulative nine months of the current fiscal year are not directly comparable to the previous year. This discrepancy arises due to the inclusion of results from Cenexi, following Gland Pharma’s strategic move to acquire the Cenexi Group. The acquisition was initiated on November 29, 2022, through a put option agreement amounting to up to 120 million euros. This marked Gland Pharma’s entry into international markets.

The post-merger integration review for Cenexi is now largely complete. Gland Pharma is focused on identifying areas that require investments and significant improvements within Cenexi. The company expressed satisfaction with the growth in its base business, emphasizing the introduction of new products and improved volumes in the existing basket.

Despite facing operational challenges in the near term, Gland Pharma is optimistic about its long-term growth prospects. The company highlighted a healthy partner order book and significant opportunities through signed contracts for sustained growth. However, it acknowledged ongoing issues with operational performance, leading to the need to rebalance capacity and shift certain products to different lines. This process is expected to take time due to regulatory processes.

Established in Hyderabad in 1978, Gland Pharma has evolved from a contract manufacturer of small volume liquid parenteral products to one of the largest and fastest-growing generic injectables manufacturing companies globally. Operating under a business-to-business (B2B) model, the company has a robust presence across 60 countries and a professional management team. It focuses on meeting diverse injectable needs with high-quality products at attractive price points, continuously leveraging its R&D expertise to synthesize complex molecules for global markets. Efforts are underway to expand manufacturing capabilities for additional complex injectables and new delivery systems such as pens and cartridges.

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