Gland Pharma shares close nearly 4% lower as Q1 net profit slumps 26% YoY; check details

Shares of Gland Pharma Ltd slipped over 9% to an intraday low of ₹1,911.05 on Wednesday, August 7, after the company posted its earnings report for the first quarter of FY25.

The pharma company’s net profit fell 26% year-on-year to ₹143.8 crore in Q1, compared to ₹ 194.1 crore in the year-ago period. Sequentially, the net profit dropped by 25% from ₹192.4 crore compared to the last quarter of FY24.

Revenue from operations rose 16% to ₹1,401.7 crore, compared to ₹1,208.7 crore in the year-ago period. However, on a quarter-on-quarter basis, the figures dropped 8.8% from ₹1537.5 crore in Q4FY24.

Commenting on the results, Srinivas Sadu, Executive Chairman and CEO of Gland Pharma, said, “This growth aligns with our projections and is primarily driven by the US market, which saw a 27% revenue increase led by existing and certain new products. Our base business EBITDA margins were at 29%, and consolidated EBITDA margins for the quarter were 19%, mainly affected by Cenexi.”

Sadu added that the company is confident of achieving the projection for the full fiscal year and stronger performance in upcoming quarters.

During the quarter ended June 30, 2024, Gland Pharma made significant strides across domains.

The company spent heavily on research, with R&D expenses totalling ₹48.90 crore or 5% of revenue.

On the regulatory front, 8 ANDAs were filed and 7 approved, with total filings reaching 356 in the US market. The global product registrations now stand at 1,708.

The company made a capex of ₹63.7 crore for the quarter.

The company launched eight new molecules in the US market, including Eribulin mesylate and Plerixafor. In the Chinese market, the company filed nine products, with three approvals and one commercialisation.

Share of Gland Pharma ended the day's trade 3.76% lower at ₹2027.75 on Tuesday.