Gland Pharma (GLAND) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue fell to ₹36,246 Mn from ₹44,007 Mn; lower sales of key products and a high base from COVID-related products weighed on performance.

• Consolidated EBITDA was ₹10,248 Mn and PAT ₹7,810 Mn; gross profit margin improved YoY, supported mainly by a favorable geography mix.

• Strategy centered on geographic expansion, complex injectables, China launches, biosimilar CDMO development and integration of Cenexi.

Financial highlights

• Consolidated revenue from operations was ₹36,246 Mn versus ₹44,007 Mn in FY22; other income was ₹2,405 Mn versus ₹2,239 Mn.

• EBITDA was ₹10,248 Mn, down from ₹15,102 Mn; EBITDA margin was 28% versus 34% in FY22.

• PAT was ₹7,810 Mn versus ₹12,117 Mn; PAT margin was 22% versus 28%, and diluted EPS was ₹47.43 versus ₹73.64.

• Adjusted for the ₹565 Mn exceptional provision for a customer’s credit-impaired balance, profit before exceptional items and tax was ₹11,110 Mn consolidated.

• Operating cash flow was ₹3,640 Mn versus ₹7,908 Mn; cash and cash equivalents at year-end were ₹19,089 Mn.

Outlook and guidance

• FY24 plans included targeting three to four additional product approvals in China; China remained a key geographic priority.

• Priorities included expanding in South Africa and Kazakhstan, developing complex products and new microsphere and combi-vial manufacturing lines, and integrating Cenexi.

• Biosimilar CDMO development was advancing through external partnership discussions and customer-contract negotiations; the first bio-CDMO contract had been signed.