Pharma Stock Sheds 19%, Hits 52-Week Low on Poor Q4, PAT Tumbles 72%

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Pharma Stock Sheds 19%, Hits 52-Week Low on Poor Q4, PAT Tumbles 72%
Credit: © Reuters.

By Malvika Gurung -- Shares of pharmaceutical company Gland Pharma (NS: GLAD ) nosedived 18.72% in Friday’s intraday trade and recorded a fresh 52-week low of Rs 1,082.55 apiece in the session, following poor earnings results in the quarter and fiscal year ended March 31, 2023.

Gland Pharma reported a decline in all the major financial fronts in the March 2023 quarter, including topline, bottomline, EBITDA, and the EBITDA margin, among other figures.

The company’s profit after tax shed 72% year-on-year to Rs 78.7 crore in the last quarter of FY23 from Rs 285.9 crore in the same period last year, while plunging 66% sequentially during the quarter, hurt by soft demand in key operating markets.

The Hyderabad-based pharma company’s revenue from operations fell 29% YoY and 16% QoQ to Rs 785 crore in the March quarter due to the shutdown of p​​roduction line in Pashamylaram Penems facility on line upgradation, and reduced business from domestic B2C division.

Its EBITDA in the quarter under review tanked 52% YoY and 42% QoQ to Rs 168.4 crore, and the EBITDA margin contracted sharply to 21% from 32% YoY.

For the full financial year 2022-23, Gland Pharma reported an 18% rise in revenue from operations on a YoY basis at Rs 3,624.6 crore, on the back of inventory rationalization across US customers, high price pressure with increased competition impacting revenue and margins, and increased base last year led by the sales of Covid-related products.

“We have formally closed the acquisition of Cenexi and welcome it to be a part of the Gland-Fosun family. This is our first overseas acquisition and our move into the next phase of growth and expansion. As an important milestone we received our first China approval and have also initiated the launch of our first product,” said MD & CEO, Srinivas Sadu.

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