Generic injectables maker Gland Pharma on February 3 reported a 7% rise in third-quarter profit, as lower expenses helped mitigate the impact from production issues at its French unit Cenexi.
The company reported consolidated net profit of Rs 205 crore for the quarter ended December 31, 2024 as compared to Rs 192 crore in the year-ago period.
Revenue from operations declined 10.4% to Rs 1,384 crore as against Rs 1,545.2 crore in Q3FY24. However, its total expenses also dropped 11% due to lower inventory costs.
Srinivas Sadu, Executive Chairman of Gland Pharma, said, “Our Q3 FY25 revenue was at Rs 1,384 crore with an EBITDA of Rs 360 crore, resulting in a 26% EBITDA margin. Notably, our base business EBITDA margin saw a significant improvement of 500 basis points, reaching 39%. We are also excited about the progress of our strategic biologics CDMO collaborations with some of the leading companies in this space. These partnerships open doors to exciting opportunities in the rapidly growing biologics CDMO segment and is expected to generate incremental revenue starting next financial year. Furthermore, the recent conclusion of the USFDA inspections at our Dundigal and Pashamylaram facilities underscores our unwavering commitment to quality and regulatory compliance. We remain focused on driving long-term value creation through strategic partnerships, innovation, and continued investments in new products and technologies.”
Shyamakant Giri, Chief Executive Officer of Gland Pharma, said, “I am honoured and excited to lead Gland Pharma as its new CEO. Building on the company's strong foundation, my focus will be on enhancing operational excellence in our base business, ensuring Cenexi's successful turnaround, identifying and pursuing new growth opportunities, and further solidifying our position as a leader in the CDMO space, particularly in biologics and complex injectables. I believe that by fostering a culture of innovation, collaboration, and customercentricity, we can achieve sustainable growth and create long-term value for all our stakeholders.”
Production setbacks at Cenexi's sites in Paris and Belgium and hurt revenue, Gland Pharma said in a press release.
Sales from Gland Pharma's Europe business fell 19%, while US sales dropped 11%.
Most Indian generic drugmakers derive a significant share of revenue from the US, where intensifying competition has proven a drag on their earnings.
Rivals Sun Pharma and Cipla beat third-quarter profit estimates, while Dr Reddy's missed expectations. All three drugmakers saw muted growth in the North American market, including the US.
On February 3, Gland Pharma's shares on BSE closed 1.47% lower at Rs 1,508 apiece. The results were announced post-market hours.
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