Consolidated profit before tax stood at Rs 324.08 crore in quarter ended 30 September 2022, down 19.1% as against Rs 400.67 crore in Q2 FY22.

EBITDA slipped 15% to Rs 362.5 crore in Q2 FY23 as against Rs 427.8 crore posted in Q2 FY22. EBITDA margin decreased to 33% in Q2 FY23 as against 38% in Q2 FY22. PAT margin declined to 29% in Q2 FY23 from 35% reported in the corresponding quarter previous year.

The pharma company's core markets (USA, Europe, Canada and Australia) rose 3% to Rs 747.5 crore in Q2 FY23 as against Rs 722.5 crore recorded in Q2 FY22. Core markets accounted for 72% of revenue growth during the quarter as compared to 67% in Q2FY22.

Revenue from India market tumbled 42% to Rs 72.6 crore in Q2 FY23. India market accounts for 7% of Q2FY23 revenue as compared to 12% in Q2FY22. Insulin line was operational during the second half of the quarter. Input costs continued to remain high due to supply side challenges for core portfolio impacting sales.

Revenue from Rest of the World markets declined 3% to Rs 224.3 crore in quarter ended 30 September 2022. Rest of the World markets, accounted for 21% of Q2 FY23 revenue for the quarter and maintaining similar level of revenue contribution as compared to Q2 FY22. The company has witnessed recovery of business in its key market in Middle East and North Africa (MENA).

The total R&D expense for Q2FY23 was Rs 41.4 crore which is 4% of revenue. During the quarter 30 September 2022, the company has filed 6 ANDAs, 3 DMFs and received 6 ANDA approvals.

As of September 30, 2022, the pharma company along with its partners had 322 ANDA filings in the United States, of which 259 were approved and 63 pending approvals.

Total Capex incurred during the quarter ended 30 September 2022, was Rs 41.1 crore. During first half of the current financial year, total Capex incurred was Rs 82.5 crore.

Commenting on the results, Srinivas Sadu, MD & CEO of Gland Pharma said, “We closed this quarter Q2 FY23, with a revenue of Rs 1,044.4 crore and a PAT of Rs 241.2 crore. We continue to make investments in R&D and were able to complete 6 ANDA filings during this quarter. Although we have seen increased competition in our new products, we remain confident of our launch pipeline that will ensure sustainable growth. We are seeing positive momentum in our Biologics/Biosimilar CDMO business.”

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.