Gland Pharma Q2 PAT plunges 20%, revenue slips 3%, stock ends green

As of Q2FY23, Gland Pharma Ltd. announced a decline in its consolidated net profit by 20.14% to Rs. 241.24 crores due to lower sales and higher expenses. As of Q2FY22, profit after tax (PAT) was Rs. 302.08 crores.

Consolidated revenue from operations during Q2FY23 was 1,044.4 crore, versus 1,080.47 crores in the period a year ago, representing a year-on-year decline of 3.33%. Revenue for the quarter improved 22% from the first quarter to 856.89 Cr of the current year.

Commenting on the results, Mr. Srinivas Sadu, MD and CEO of Gland Pharma said, “We closed this quarter Q2 FY23, with revenue of 10,444 Mn and a PAT of 2,412 million. We continue to invest in R&D and were able to complete 6 ANDA filings during this quarter. Although we have seen increased competition in our new products, we remain confident in our launch pipeline that will deliver sustainable growth. We are seeing positive momentum in our biologics/biosimilars CDMO business.”

The company generated 3,956 million in operating cash flow in the first half of FY23. As of September 2022, the company had a total 38.200 million in cash and bank balances, the board said in a regulatory filing.

Contrary to 67% in Q2FY22, the main markets of the United States, Europe, Canada and Australia accounted for 72% of sales in Q2FY23. Products supplied to US and Indian customers for the US market are included in US market sales.

For Q2FY23 direct sales to US customers 5,984 million and Indian customers for US markets were 754 million, totaling 6,738 million. Total sales in the US market increased 5% on an annual basis and 6% on a quarterly basis.

Rest of the world markets contributed 21% to Q2FY23 revenue for the quarter, maintaining a revenue contribution level close to that of Q2FY22. Activity resumed in the company’s main MENA market. India represents 7% of Q2FY23 revenue, down from 12% contribution in Q2FY22. The company said the insulin line was operational in the second half of the quarter. Input costs remained high due to supply side challenges for the core portfolio which are impacting sales.

For the second quarter of FY23, overall R&D expenditure was 414 million, or 4.0% of sales. The company submitted 6 ANDAs, 3 DMFs and obtained 6 ANDA approvals for T2FY23. As of September 30, 2022, the company and its partners have filed 322 ANDAs in the United States, of which 259 have been authorized and 63 are still pending action.

The company said in a regulatory filing that its total capital expenditure incurred during the quarter ended September 30, 2022 was 411 million. During the first half of the current financial year, the total capital expenditure incurred was 825 million.

Gland Pharma Ltd shares closed today at 2,219.00 each, up 1.15% from the previous close of 2,193.85.

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