Gland Pharma Limited on Monday announced its financial results for the third quarter and nine months ended December 31, 2022. The generic injectables maker reported a lower-than-expected third-quarter profit. The company said that its consolidated net profit fell 15% to 2.32 billion rupees ($28.50 million) for for the quarter ended Dec. 31.
On Tuesday, the company‘s share price fell 4 percent and touched 52-week low in the early trade on January 24 after the company posted a weak set of numbers for the quarter ended December 2022.
It has touched 52-week low of Rs 1,309 and quoting at Rs 1,320, down Rs 57.35, or 4.16 percent on the BSE.
Reportedly, analysts had expected the company for the quarter ended Dec. 31. Analysts, on average, had expected the company to post a profit of 2.76 billion rupees.
According to the company’s statement, its margin on earnings before interest, taxes, depreciation, and amortisation slipped to 35 percent from 36 percent from a year ago.
“We closed this quarter Q3 FY23, with a revenue of ₹ 9,383 Mn and a PAT of ₹ 2,319 Mn. Challenging business environment, ongoing supply chain disruptions leading to production delays continue to impact our performance. We have received EIR from US FDA after the last
audit at our Dundigal facility. Our continued focus on product quality and compliance differentiates us and provide confidence to our partners for long term association. We also completed signing the share purchase agreement for the proposed acquisition of Cenexi,” Srinivas Sadu, MD & CEO of Gland Pharma said in a statement.
Sadu also said that Cenexi is their first acquisition overseas and it is in line with the company’s long-term growth objectives.
“This is our first acquisition overseas and it is in line with Gland’s long-term growth objectives. It will enable Gland to increase its presence and to expand its product and service offering capability in Europe. Our new production lines in our sterile facility, in Pashamylaram, will support our product portfolio of complex and differentiated delivery formats. Amidst the tough business environment, we are taking all steps towards generating long-term stakeholder value,” Sadu added.
Meanwhile, revenue from operations fell 11.8 percent to Rs.9.38 billion due to weak sales in international and domestic markets.
Core markets for the company include the United States, Europe, Canada, Australia and New Zealand, which accounted for 70 percent of revenue during the third quarter.
India market accounts for 9 percent of Q3FY23 revenue and witnessed the sequential recovery of business due to the normalisation of Insulin production line, the company said.