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Pharmaceuticals company Gland Pharma announced Q3FY24 results:
Financial Performance
- Revenue from Operations: Rs 15,452 million, a YoY increase of 65% (Q3FY23: Rs 9,383 million).
- Gross Profit: Rs 9,459 million, with a Gross Profit Margin of 61%.
- EBITDA: Rs 3,557 million with a YoY growth reported at 23%.
- PBT (Profit Before Tax): Rs 2,832 million with a PBT Margin of 18%.
- PAT (Profit After Tax): Rs 1,919 million, which is slightly down by 17% from Q3FY23
- PAT Margin: 12%.
Segment-wise Performance
- US Market Share: US accounted for 53% of the Q3FY24 revenue, a decrease from 62% in Q3FY23.
- Europe and Rest of the World: Significant growth in Europe and ROW market due to the acquisition of Cenexi.
- India Market: Accounts for 5% of Q3FY24 revenue, down from 9% in Q3FY23.
Operational Highlights
- R&D Expenses: Rs 530 million for Q3 FY24 which is 5% of operating revenue.
- ANDA Filings: 10 ANDAs filed during the quarter with 3 approvals. A total of 346 ANDAs filed in the US till date.
Capital Expenditure
- Capex: Rs 810 million incurred for the quarter ended December 31, 2023.
Cenexi Acquisition Impact
- Cenexi Revenue: Rs 4,439 million reported for Q3 FY24 with a gross contribution of 75% but a negative EBITDA of Rs 170 million.
Commenting on the results, Srinivas Sadu, MD & CEO of Gland Pharma, said, “With strong results in the third quarter, we continued our positive momentum for the fiscal year. Our consolidated Q3 FY24 reported sales of Rs 15,452 million, reflecting a quarter-on-quarter increase of 13% and a YoY increase of 65%. We achieved a consolidated EBITDA of Rs 3,557 million and a consolidated net profit of Rs 1,919 million. In the ex-Cenexi base business, we are happy to keep up with the growth aspirations, and the performance has been encouraging with the introduction of new products and improved volumes of the current basket.
In the Cenexi business, we reported a negative EBITDA of Rs 170 million, largely due to one-off expenses, which, if adjusted, would have resulted in a break-even at the operational level. Our post-merger integration review is now mostly complete, and we have identified areas where Cenexi would need investments and significant improvements. Our partner order book is healthy, and we have significant opportunities through the signed contracts to play out long-term growth. However, in the near term, we continue to face issues with operational performance, leading us to rebalance our capacity and shift certain products to different lines, which will take time due to regulatory processes. We target realizing our acquisition thesis over the next 12–15 months.
Overall, we are confident that we will end FY24 on a high note and continue to be excited about the opportunities ahead of us.”
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