Glenmark Pharmaceuticals (GLENMARK) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was INR 34,338 million, up 7.1% year-over-year, driven by strong growth in India and Europe, offsetting declines in North America and ROW.

• EBITDA for Q2 FY25 was INR 6,019 million (margin 17.5%), and PAT was INR 3,545 million (margin 10.3%), marking a turnaround from prior losses.

• RYALTRIS® and innovation assets advanced globally, with ISB 2001 showing 75% ORR in Phase 1 and further launches planned.

• Board approved unaudited financial results for Q2 and H1 FY25, including both ongoing and discontinued operations.

Financial highlights

• Gross margin improved to 68.8% from 62.7% year-over-year; EBITDA margin expanded to 17.5% from 14.4%.

• PAT margin improved to 10.3% from -5.6% in Q2 FY24; consolidated net profit after tax for Q2 FY25 was INR 3,544.85 million.

• R&D expenditure in Q2 FY25 was INR 2,279 million (6.6% of revenue); capex for the quarter was INR 790 million.

• Net cash as of September 2024 was INR 259 crores; inventory at INR 2,840 crores, receivables at INR 2,860 crores, payables at INR 2,360 crores.

• Operating expenses for Monroe plant are $25-26 million annually.

Outlook and guidance

• FY25 consolidated revenue guidance is INR 1,35,000–1,40,000 million; EBITDA margin expected around 19% with further improvement in subsequent years.

• R&D investment targeted at 7–7.25% of sales; double-digit PAT margin targeted.

• India business expected to continue outperforming the market; U.S. business to focus on injectables and complex generics with new launches planned.

• ROW region anticipated to finish FY25 with high single-digit year-over-year growth on a constant currency basis.