Gland Pharma Q1 Results: Profit Falls 26%, Misses Estimates

Gland Pharma Ltd.'s consolidated net profit decreased 26% in the first quarter of fiscal 2025, missing analysts' estimates.

The company posted a net profit of Rs 143.76 crore in the quarter-ended June, as compared with Rs 194.10 crore in the year-ago period, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a profit of Rs 214 crore.

• Revenue up 16% to Rs 1,401.71 crore versus Rs 1,208.69 crore (Bloomberg Estimate: Rs 1,519 crore).

• Ebitda down 10% to Rs 264 crore versus Rs 293.95 crore (Bloomberg Estimate: Rs 359 crore).

• Margin at 18.9% versus 24.3% (Bloomberg Estimate: 23.60%).

• Net profit down 26% to Rs 143.76 crore versus Rs 194.10 crore (Bloomberg Estimate: Rs 214 crore).

R&D expenses stands at Rs 48.9 crore, which is 5% of revenue.

Total capex incurred during the quarter-ended June was Rs 63.7 crore.

US Market: Eight molecules, including Eribulin mesylate, Plerixafor, Nelarabine and Edaravone, were launched in the market.

China Market: Nine products have been filed to date, of which three have been approved and one has been commercialised.

Q1 FY25 Highlights

• Revenue at Rs 388.3 crore/Euro 43 million.

• Gross margin: 78%.

• Ebitda at Rs -28.6 crore/Euro -3 million.

Q2 FY25 Impact:

• Lower activity levels are expected due to the European holiday season and planned summer maintenance shutdowns. The Fontenay plant will have an extended three-week shutdown for new ampoule line installation.

• Company expects positive Ebitda for quarter four of this fiscal and a positive Ebitda for the next fiscal, driven by increased revenue exceeding the 200 million euro threshold.

“We reached Rs 14,017 million in total revenue, a 16% increase from Q1 FY24. This growth aligns with our projections and is primarily driven by the US market, which saw a 27% revenue increase led by existing and certain new products," said Srinivas Sadu, executive chairman and CEO of Gland Pharma.

"Our base business Ebitda margin were at 29%, and consolidated Ebitda margins for the quarter were 19%, mainly affected by Cenexi. We're confident in our ability to meet our fiscal year goals and are excited about the growing opportunities and even stronger results expected in the coming quarters," he added.

Shares of Gland Pharma closed 0.21% higher at Rs 2,119.80 apiece on the NSE, as compared with a 0.26% loss in the benchmark Nifty 50.