Gland Pharma Q1 Results FY2023, PAT at Rs. 2292 million

On 20th July 2022, Gland Pharma announced its quarterly results for the first quarter of FY2023

Q1FY23 Key Highlights:

-Continued supply disruption, cost escalation and the Company’s decision to shut down two of its manufacturing lines for productivity improvement have affected the business for the quarter. The company reported its revenue from operations at Rs. 8569 million with a decline of 26% YoY which was higher due to COVID-related product sales. 

- Company’s total income was reported at Rs. 9313 million with a decline of 23%

- For Q1FY23, the company reported EBITDA at Rs. 3443 million seeing a decline of 31%, EBITDA margin for Q1FY23 was at 37% from 41% in Q1FY22.

- PBT was reported at Rs.3085 million with a decline of 35% with a PBT margin of 33%

- The company reported PAT at Rs. 2292 million with a drop of 35%.

- The Company generated Rs. 3328 million of cash flow from operations during Q1FY23. As of June 2022, the company had a total of Rs. 37853 million of Cash.

- The total R&D expense for Q1FY23 was Rs. 410 million which is 4.8% of revenue. As of Jun 30, 2022, we along with our partners had 316 ANDA filings in the United States, of which 255 were approved and 61 pending approvals. The Company has a total of 1,567 product registrations globally. 

Market-wise Revenue:

- Core markets of the US, Europe, Canada, and Australia accounted for 82% of revenue during Q1FY23 as compared to 65% in Q1FY22.

- Sale to the US market is comprised of products sold to both US customers and Indian customers for US markets. For Q1FY23 sales to the US customers were Rs.5,513 million and to Indian customers for US markets was Rs. 872 million, totaling Rs. 6,385 million. Total sales to the US market declined by 4% YoY.

- Rest of the World markets, accounted for 12% of Q1FY23 revenue for Q1FY23 as against 19% in Q1FY22. The delay in input material supplies has significantly impacted the ability to take up orders. The Company’s key markets continue to remain MENA, LATAM, and APAC, and it has registered additional products during the quarter in new geographies.

- Indian market accounts for 6% of Q1FY23 revenue as compared to 16% in Q1FY22. India's B2B sales were impacted due to the planned shutdown of the Insulin line during the quarter and higher sales of COVID drugs like Remdesivir and Enoxaparin Injection during the same quarter of last year.

Commenting on the results,  Mr. Srinivas Sadu, MD & CEO of Gland Pharma said: “While market demand for our products remained strong, continuing supply disruptions in the midst of challenging macro environment has impacted our growth for the first quarter of fiscal 2023. The revenue for the quarter stood at Rs. 8,569 million and our PAT stood at Rs. 2,292 million. We ensured timely new product launches which is key to our sustainable business growth. In spite of pricing pressure in the US market and inflationary costs, we managed to improve our margin. We are continuously investing into our people, infrastructure, and portfolio to expand our global footprint.”