Gland Pharma Q2 Results: Profit Falls Missing Estimates
Gland Pharma's Q2 profit fell 20% year-on-year to Rs 241 crore.
Gland Pharma Ltd.’s second-quarter profit declined, missing forecasts.
Net profit of the Hyderabad-based generic injectable manufacturer fell 20% year-on-year to Rs 241 crore in the three months through September, according to its exchange filing. That compares with the Rs 259-crore consensus estimate of analysts tracked by Bloomberg.
Sequentially, the profit rose 5%.
Gland Pharma Q2 Highlights (YoY)
Revenue fell 3% to Rs 1,044 crore, against the estimated Rs 1,020 crore.
Operating profit was down 21% to Rs 297 crore, compared with the Rs 334-crore forecast.
Operating margin stood at 28.4% against 34.9% a year ago and 32.8% estimate.
Srinivas Sadu, managing director and chief executive officer of Gland Pharma, said in the filing, “Although we have seen increased competition in our new products, we remain confident of our launch pipeline that will ensure sustainable growth. We are seeing positive momentum in our biologics/biosimilar CDMO business.”
He said that the company continues to invest in R&D and completed six ANDA filings during the quarter.
Other Highlights (YoY)
Core markets of the U.S., Europe, Canada, and Australia accounted for 72% of revenue during Q2FY23. They reported a growth of 3% over September quarter last year.
India sales, accounting for 7% of the revenue, contracted 42%. The company’s insulin line was operational only during the second half of the quarter. “Input costs continued to remain high due to supply side challenges for core portfolio impacting sales.”
Rest of world markets' revenue declined 3%, contributing of 21% of total revenue. The company has witnessed recovery of business in its key market in Middle East and North Africa (MENA).
The drugmaker's research and development expense was 4% of the revenue at Rs 41.4 crore and its total capex outlay was Rs 41.1 crore during the quarter.
As of September, the company had a cash balance of Rs 3,820 crore.
Gland Pharma's revenue in the first six months ended September declined 15% over a year earlier due to “substantial business impact in first quarter of current financial year and higher base due to Covid-related products sales last year".
Shares of Gland Pharma closed 1.57% higher on Tuesday, a day before the results, as against a 0.48% decline in the benchmark Sensex.