Gland Pharma Q1 FY25 results: Net profit falls 26%, revenue rises 16%

Hyderabad-based generic injectables maker Gland Pharma on Tuesday reported a 26 per cent year-on-year (Y-o-Y) fall in consolidated net profit for the June quarter of financial year 2024-25 (Q1FY25) at Rs 143.8 crore, down from Rs 194.1 crore reported for the same period last year.

The pharmaceutical company’s consolidated revenue from operations rose to Rs 1,407.7 crore in Q1FY25, a 16 per cent Y-o-Y rise from Rs 1,208.7 crore reported in Q1FY24.

On a sequential basis, the company exhibited a 25 per cent dip in net profit and a 9 per cent dip in revenues from Rs 192.4 crore and Rs 1,537.4 crore reported in Q4FY24 respectively.

 

The company’s consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) decreased 11 per cent Y-o-Y to Rs 265.4 crore in the June quarter, with Ebitda margin coming in at 19 per cent, compared to 25 per cent for the same period last year.

The decrease in the group’s consolidated Ebitda margin is being attributed to the negative Ebitda reported by Cenexi, its recent acquisition. Cenexi reported an Ebitda of Rs -28.6 crore in the June quarter, according to the company’s investor presentation.

Gland Pharma also reported a 27 per cent on-year increase in its United States (US) business, contributing 54 per cent to the company’s revenue. Meanwhile, the Indian market experienced a 19 per cent on-year decrease in Q1FY25, making up just 5 per cent of the company’s revenue.

“We are currently evaluating various strategic options to determine the best path forward for this business,” the company said on the India business in its investor presentation.

Commenting on the results, Srinivas Sadu, executive chairman and chief executive officer (CEO) of Gland Pharma, said that the 16 per cent increase in revenue aligns with the company’s projections and is primarily driven by the US market, which saw a 27 per cent revenue increase led by existing and certain new products.

“Our base business Ebitda margins were at 29 per cent, and consolidated Ebitda margins for the quarter were at 19 per cent, mainly affected by Cenexi,” he said.

He added that the company is confident in its ability to meet its fiscal year goals and is excited about the growing opportunities and stronger results expected in the coming quarters.
 

On Tuesday, Gland Pharma’s stocks were up by 0.25 per cent, ending the day’s trade at Rs 2,109.40 apiece on the Bombay Stock Exchange (BSE).