- 26 Apr 2024
- ICICI Securities
GLS Q4FY24 – High base, sales deferments, supply chain disruption hurt numbers
GLS - 831 Change: 1.00 (0.12 %)News: Glenmark life sciences (GLS) reported muted set of numbers for Q4FY24 with a revenue de-growth of 11% YoY to Rs 520 core. API sales to Glenmark Pharma (~32% of the revenues) de-grew 28% YoY to Rs 166 crore on a higher base. External API sales on the other hand grew 6% to Rs 318 core. CDMO sales de-grew 38% to Rs 35 crore as execution for a Japanese CDMO contract was deferred to next fiscal. Overall sales to the extent of Rs 45 crore were also impacted by supply chain disruption and realigning adjustments pertaining to Nirma consolidation. EBITDA Margins were squeezed to 26.9% compared to 33.7% last year. Decline mainly due to lower sales even as the GPMs were strong at 56%.
Views: The management expects supply chain issues to improve in the coming quarters and also expects strong traction in CDMO with 4th and 5th contract wins in H2FY25. Capex guidance for FY25 is Rs 340 crore which is in line with the planned expansion. The management is also working on various new initiatives especially in the CDMO space after the discussion with Nirma. FY25 Guidance- Sales growth in low to mid teen, EBITDA margins 28-30%.
Impact: Neutral