Gland Pharma Ltd., a generic injectable focused pharmaceutical company, reports a net profit 78.68 crore during Q4, a sharp decline of 72% was seen 285.90 crore reported in the year-ago quarter. Net profit also affected by one-time expense cost 56.46 crores for impairment loss.
Company’s revenue from operations on 785 crore was down 29% year-on-year during Q4. The company attributed the decline to production line shutdown during the quarter at its Pashamilaram (Telangana) Penems manufacturing facility due to line upgradation. The domestic B2C division’s business also declined during the year as compared to the previous year.
The India market, which accounts for 8% of total revenue, saw a 68% drop in sales during the fourth quarter of FY2023, which the company attributed to a higher base of COVID related sales and lower insulin business.
Revenue from operations was down 16% even on a sequential basis. Apart from the impact of the shutdown of the Penem production line as part of the capacity expansion plan, a soft off-take in the Rest of the World (RoW) market due to tender seasonality was also attributed as the reason for this gradual decline in revenue. .
The RoW market, which accounted for 22% of Q4FY23 revenue, saw revenue decline by 12% sequentially and 10% year-on-year.
Analysts were expecting a subdued performance for Gland Pharma during Q4. Analysts at Sharekhan said in their Q4 preview report, “Gland Pharma continues to face supply-side constraints due to increased competition in the injectable space, while some customers are suffering losses, which we believe It is expected that the fourth quarter of FY23 will be a weak performance for the fourth consecutive quarter. ,
Company’s earnings before interest taxes depreciation and amortization (EBITDA) 168 crore during Q4 declined 52% year-on-year and 42% sequentially.
Company’s revenue during FY23 362.46 million customers in the US market decreased 18% year-over-year, impacted by inventory rationalization. Sales of COVID-related products had already led off the previous year’s high base. Higher pricing pressure due to increased competition further impacted the company’s revenue and margins.
on EBITDA 1024.8 crore during FY23 decreased by 32% year-on-year 1510.2 crore in FY22.
Operating performance was impacted by rising energy costs of 31% year-on-year due to higher fuel and power prices. Employee costs also increased by 19% year-on-year due to new production lines at the Pashamilaram plant (Telangana) and additional headcount to support the Bio CDMO facility at Shamirpet.
Other expenses increased by 11% over the prior year due to various professional fees paid for M&A related activities
Mr. Srinivas Sadu, MD & CEO, Gland Pharma, said, “We have formally closed the acquisition of Senexi and welcome it to become a part of the Gland-Fosson family. Our step into the next step. We made progress on our way to make bio-CDMO and signed our first contract for plasma proteins at our Shamirpet facility.”
The company launched 10 product SKUs during the quarter.
Sadoo said that as an important milestone, the company has got its first China approval and has also started launching our first product. “Our progress on the complex portfolio is as planned and this year we launched a total of 3 complex products during the year. Our priority for the next year will be the seamless integration of Senexi with a focus on driving sustainable business growth”, Sadu he said
Net profit of the company during FY23 781 Crore, a decline of 36% year-on-year.
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