Results     07-Nov-23
Analysis
Gland Pharma
NP down 19.55%
For the quarter ending sept 2023, consolidated Net sales (including other operating income) of Gland Pharma has increased 31.50% to Rs 1373.42 crore compared to quarter ended Sept 2022.  Operating profit margin has declined from 28.42% to 23.60%, leading to 9.17% rise in operating profit to Rs 324.08 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 48.82% to 37.64%.   Purchase of finished goods cost rose from 0.37% to 0.45%.   Employee cost increased from 9.81% to 22.16%.   Other expenses rose from 12.27% to 16.20%.   Power and Oil fuel cost rose from 3.10% to 4.24%.   

Other income fell 18.99% to Rs 53.16 crore.  PBIDT rose 4.07% to Rs 377.24 crore.  Provision for interest rose 251.74% to Rs 6.05 crore.  Loan funds rose to Rs 357.03 crore as of 30 September 2023 from Rs 4.54 crore as of 30 September 2022.  Inventories rose to Rs 2,084.35 crore as of 30 September 2023 from Rs 1,559.74 crore as of 30 September 2022.  Sundry debtors were higher at Rs 1,373.14 crore as of 30 September 2023 compared to Rs 1,201.19 crore as of 30 September 2022.  Cash and bank balance declined from Rs 3,295.03 crore as of 30 September 2022 to Rs 2,144.73 crore as of 30 September 2023.  

PBDT rose 2.89% to Rs 371.19 crore.  Provision for depreciation rose 121.71% to Rs 81.3 crore.  Fixed assets increased to Rs 3,567.25 crore as of 30 September 2023 from Rs 1,678.80 crore as of 30 September 2022.  Intangible assets increased from Rs 12.24 crore to Rs 455.60 crore.  

Profit before tax down 10.55% to Rs 289.89 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 95.81 crore, compared to Rs 82.84 crore.  Effective tax rate was 33.05% compared to 25.56%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 19.55% to Rs 194.08 crore.  

Equity capital stood at Rs 16.47 crore as of 30 September 2023 to Rs 16.47 crore as of 30 September 2022.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 57.86% as of 30 September 2023 ,compared to 57.86% as of 30 September 2022 .  

For year-to-date (YTD) results analysis.

Net sales (including other operating income) of Gland Pharma has increased 35.81% to Rs 2582.12 crore.  

Operating profit margin has declined from 29.81% to 23.94%, leading to 9.05% rise in operating profit to Rs 618.03 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 45.40% to 37.81%.   Purchase of finished goods cost fell from 0.46% to 0.38%.   Employee cost increased from 10.71% to 21.53%.   Other expenses rose from 12.98% to 16.52%.   Power and Oil fuel cost rose from 3.55% to 4.15%.   

Other income fell 35.22% to Rs 90.7 crore.  PBIDT rose 0.28% to Rs 708.73 crore.  Provision for interest rose 318.32% to Rs 10.96 crore.  Loan funds rose to Rs 357.03 crore as of 30 September 2023 from Rs 4.54 crore as of 30 September 2022.  Inventories rose to Rs 2,084.35 crore as of 30 September 2023 from Rs 1,559.74 crore as of 30 September 2022.  Sundry debtors were higher at Rs 1,373.14 crore as of 30 September 2023 compared to Rs 1,201.19 crore as of 30 September 2022.  Cash and bank balance declined from Rs 3,295.03 crore as of 30 September 2022 to Rs 2,144.73 crore as of 30 September 2023.  

PBDT fell 0.91% to Rs 697.77 crore.  Provision for depreciation rose 104.83% to Rs 146.62 crore.  Fixed assets increased to Rs 3,567.25 crore as of 30 September 2023 from Rs 1,678.80 crore as of 30 September 2022.  Intangible assets increased from Rs 12.24 crore to Rs 455.60 crore.  

Profit before tax down 12.87% to Rs 551.15 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 162.97 crore, compared to Rs 162.17 crore.  Effective tax rate was 29.57% compared to 25.64%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 17.48% to Rs 388.18 crore.  

Equity capital stood at Rs 16.47 crore as of 30 September 2023 to Rs 16.47 crore as of 30 September 2022.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 57.86% as of 30 September 2023 ,compared to 57.86% as of 30 September 2022 .  

Cash flow from operating activities increased to Rs 421.77 crore for YTD ended September 2023 from Rs 395.60 crore for YTD ended September 2022.  Cash flow used in acquiring fixed assets during the YTD ended September 2023 stood at Rs 166.45 crore, compared to Rs 82.65 crore during the YTD ended September 2022.  


Full year results analysis.

Net sales (including other operating income) of Gland Pharma has declined 17.64% to Rs 3624.6 crore.  Operating profit margin has declined from 34.32% to 28.27%, leading to 32.14% decline in operating profit to Rs 1,024.77 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 46.90% to 46.76%.   Purchase of finished goods cost fell from 0.59% to 0.42%.   Employee cost increased from 7.76% to 10.98%.   Other expenses rose from 10.15% to 13.92%.   Power and Oil fuel cost rose from 2.18% to 3.40%.   

Other income rose 7.38% to Rs 240.46 crore.  PBIDT fell 27.04% to Rs 1265.23 crore.  Provision for interest rose 42.18% to Rs 7.45 crore.  Loan funds declined from Rs 4.74 crore as of 31 March 2022 to Rs 4.45 crore as of 31 March 2023.  Inventories rose to Rs 1,945.30 crore as of 31 March 2023 from Rs 1,185.67 crore as of 31 March 2022.  Sundry debtors were lower at Rs 871.39 crore as of 31 March 2023 compared to Rs 1,074.81 crore as of 31 March 2022.  Cash and bank balance rose to Rs 3,770.68 crore as of 31 March 2023 from Rs 3,093.44 crore as of 31 March 2022.  

PBDT fell 27.25% to Rs 1257.78 crore.  Provision for depreciation rose 33.04% to Rs 146.74 crore.  Fixed assets increased to Rs 1,736.10 crore as of 31 March 2023 from Rs 1,680.40 crore as of 31 March 2022.  Intangible assets declined from Rs 12.54 crore to Rs 11.66 crore.  

Profit before tax down 31.36% to Rs 1,111.04 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 273.54 crore, compared to Rs 406.89 crore.  Effective tax rate was 25.94% compared to 25.14%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company decreased 35.54% to Rs 781.04 crore.  

Equity capital increased from Rs 16.43 crore as of 31 March 2022 to Rs 16.47 crore as of 31 March 2023.  Per share face Value remained same at Rs 1.00.  

Promoters’ stake was 57.86% as of 31 March 2023 ,compared to 58.00% as of 31 March 2022 .  

Cash flow from operating activities decreased to Rs 363.97 crore for year ended March 2023 from Rs 790.77 crore for year ended March 2022.  Cash flow used in acquiring fixed assets during the year ended March 2023 stood at Rs 223.12 crore, compared to Rs 522.12 crore during the year ended March 2022.  

Other Highlights

In Q2 FY24, USA revenue increased 9%, Europe up 379%, other core markets (Canada, New zealand and Australia) up 64%, India up 21% and ROW up 19% on YoY basis.

In H1 FY24, USA revenue increased 2%, Europe up 402%, other core markets (Canada, New zealand and Australia) up 31%, India up 23% and ROW up 72% on YoY basis.

During Q2FY24, Cenexi’s facilities were not operational for four weeks due to the annual summer shutdown. To improve the capacity and operational efficiencies, management will make approximately Euro 60 million of Investment over the next 12 to 18 months.

The total R&D expense for Q2 FY24 was Rs 35.1 crore which is 3% of revenue.

As of September 30, 2023, Gland, along with its partners, had 336 ANDA filings in the United States, of which 275 were approved and 61 were pending approvals. The Company has a total of 1,641 product registrations globally.

Total Capex incurred during Sept 2023 quarter was Rs 97.1 crore.


Management Comments :
Mr. Srinivas Sadu, MD & CEO of Gland Pharma said “We ended the first half of FY24 with revenue of INR 25,821 million, a 36% year-over-year increase, and a net profit of INR 3,882 million. Pricing and market share trends have shown encouraging indicators of normalization in our key products, contributing to our revenue growth. The overall business stability is restoring confidence, and we stay optimistic about future growth with the forthcoming launches, portfolio expansion, and entry into new markets via a partner-led strategy. Considering the annual summer shutdown in France & Belgium, revenues at Cenexi are in line with our estimates; However, the gross contribution margins saw a sequential improvement. Cenexi remains a strategic asset with a distinctive acquisition thesis, and we are committed to instituting effective measures and new investments to optimize operations and deliver long-term value to our shareholders.”



Gland Pharma : Consolidated Results
 Quarter endedYear to DateYear ended
Particulars202309202209Var.(%)202309202209Var.(%)202303202203Var.(%)
Net Sales (including other operating income)1,373.421,044.4031.502,582.121,901.3035.813,624.604,400.71-17.64
OPM (%)23.6028.42-483 bps23.9429.81-587 bps28.2734.32-604 bps
OP324.08296.859.17618.03566.769.051,024.771,510.15-32.14
Other Inc.53.1665.62-18.9990.70140.02-35.22240.46223.947.38
PBIDT377.24362.474.07708.73706.780.281,265.231,734.09-27.04
Interest6.051.72251.7410.962.62318.327.455.2442.18
PBDT371.19360.752.89697.77704.16-0.911,257.781,728.85-27.25
Depreciation81.336.67121.71146.6271.58104.83146.74110.333.04
PBT289.89324.08-10.55551.15632.58-12.871111.041618.55-31.36
Share of Profit/(Loss) from Associates00-00-00-
PBT before EO289.89324.08-10.55551.15632.58-12.871111.041618.55-31.36
EO Income00-00--56.460-
PBT after EO289.89324.08-10.55551.15632.58-12.871054.581618.55-34.84
Taxation95.8182.8415.66162.97162.170.49273.54406.89-32.77
PAT194.08241.24-19.55388.18470.41-17.48781.041211.66-35.54
Minority Interest (MI)00-00-00-
Net profit194.08241.24-19.55388.18470.41-17.48781.041211.66-35.54
P/(L) from discontinued operations net of tax00-00-00-
Net profit after discontinued operations194.08241.24-19.55388.18470.41-17.48781.041211.66-35.54
EPS (Rs)*11.7814.65-19.5523.5728.56-17.4849.9673.57-32.09
* EPS is on current equity of Rs 16.47 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database


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