Consolidated profit before tax stood at Rs 310.85 crore in the quarter ended 31 December 2022, down 15% as against Rs 365.56 crore in Q3 FY22.

EBITDA slipped 11% to Rs 351.1 crore in Q3 FY23 as against Rs 394.6 crore posted in Q3 FY22. EBITDA margin decreased to 35% in third quarter as against 36% reported in in the corresponding quarter previous year. PAT margin reduced to 31% in Q2 FY23 from 33% recorded in Q3 FY22.

The pharma company's revenue from core markets (USA, Europe, Canada, Australia and New Zealand) fell 11% to Rs 662.6 crore in Q3 FY23 as against Rs 740.6 crore posted in Q3 FY22. Core markets accounted for 70% of revenue during Q3FY23, maintaining similar level of revenue contribution as compared to Q3FY22.

Revenue from India market tumbled 32% year on year to Rs 81.4 crore in the quarter ended 31 December 2022. India market accounts for 9% of Q3 FY23 revenue and witnessed sequential recovery of business due to normalization of Insulin production line.

Revenue from Rest of the World markets declined 4% YoY to Rs 194.3 crore in Q3 FY23. Rest of the World markets accounted for 21% of Q3FY23 revenue for the quarter.

The total R&D expense for Q3FY23 was Rs 51.2 crore which is 5.5% of revenue. During nine months period of current financial year, the Company has incurred Rs 1,336 million in R&D which is 4.7% of revenue. During Q3 FY23, the company has filed 8 ANDAs, and received 4 ANDA approvals.

As on 31 December 2022, Gland Pharma along with its partners has 325 ANDA filings in the United States, of which 257 were approved and 68 pending approvals.

Total capex incurred during the quarter was Rs 42.7 crore. During nine months, ended 31 December 2022, total Capex incurred was Rs 125.3 crore.

For 9 months FY23, the company's consolidated net profit tumbled 24.1% to Rs 702.36 crore on 13.9% fall in net sales to Rs 2,839.59 crore in 9M FY23 over 9M FY22.

The decline in the revenue was mainly due to to significant business impact in first quarter of current financial year because of non-availability and long lead times for several processing and primary materials, softer offtake of few of our key products in the US and higher base of last year due to COVID related products sale.

Srinivas Sadu, MD & CEO of Gland Pharma said “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.”

He further added, “We also completed signing the share purchase agreement for the proposed acquisition of Cenexi. 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.”

Hyderabad-based Gland Pharma has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become 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.

Shares of Gland Pharma were down 0.71% to Rs 1,367.60 on the BSE.