Gland Pharma slipped 6.55% to Rs 2,311.40 after the company's consolidated net profit tumbled 35% to Rs 229.2 crore on 26% decline in revenue from operations to Rs 856.9 crore in Q1 FY23 over Q1 FY22.
The pharma company said that 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.
Profit before tax stood at Rs 308.5 crore in Q1 FY23, down 35% as against Rs 4,718 crore in Q1 FY22. The company has generated Rs 332.8 crore of cash flow from operations during Q1 FY23. As of June 2022, the company had total Rs 3,785.3 crore of cash.
EBITDA slipped 31% to Rs 344.3 crore in Q1 FY23 as against Rs 498.1 crore in Q1 FY22. EBITDA margin decreased to 37% in Q1 FY23 as against 41% in Q1 FY22. PAT margin stood at 25% in Q1 FY23 from 29% reported in Q1 FY22.
The company's revenue from core markets (USA, Europe, Canada and Australia) fell 6% to Rs 705.60 crore in Q1 FY23. Core markets accounted for 82% of revenue growth during the quarter.
Revenue from India market tumbled 72% to Rs 51 crore in Q1 FY23. India market accounts for 6% of Q1FY23 revenue as compared to 16% in Q1FY22. The market witnessed higher sales of COVID drugs like Remdesivir and Enoxaparin injection during the same quarter last year.
Revenue from Rest of the World markets declined 55% to Rs 100.20 crore in Q1 FY23. Rest of the World markets, accounted for 12% of Q1FY23 revenue for the quarter as against 19% in Q1FY22.
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The total R&D expense for Q1FY23 was Rs 41 crore which is 4.8% of revenue.
As of 30 Jun 2022, the company with its partners had 316 ANDA filings in the United States, of which 255 were approved and 61 pending approvals. The company has total 1,567 product registrations globally.
Total Capex incurred during the quarter ended 30 June 2022 was Rs 41.4 crore.
Commenting on the results, 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 856.9 crore and PAT stood at Rs 229.2 crore. 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."
Hyderabad-based Gland Pharma is one of the largest and fastest growing injectable-focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India and other markets. It operates primarily under a business to business (B2B) model and it engaged in development, manufacturing and marketing of complex injectables.
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