Gland Pharma Q3 net declines 15% to Rs 232 cr due to production delays

Gland Pharma Ltd on Monday reported a 15 per cent decline in consolidated net profit at Rs 231.95 crore for the third quarter ended December 2022, impacted by production delays due to supply disruptions.

The company had posted a consolidated net profit of Rs 273.03 crore in the same period last fiscal, Gland Pharma said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 938.29 crore as against Rs 1,063.33 crore in the year-ago period.

Total expenses in the third quarter were lower at Rs 688.95 crore as compared to Rs 743.43 crore in the same period a year ago.

"Challenging business environment, ongoing supply chain disruptions leading to production delays continue to impact our performance," Gland Pharma Managing Director and CEO Srinivas Sadu said.

The company's core markets US, Europe, Canada, Australia, and New Zealand accounted for 70 per cent of revenue during the quarter, maintaining a similar level of revenue contribution as compared to Q3 FY22, Gland Pharma said.

Rest of the world markets contributed 21 per cent while the India market accounted for 9 per cent of Q3 FY23 revenue and witnessed sequential recovery of business due to normalisation of insulin production line, it added.

During the quarter, total R&D expense stood at Rs 51.2 crore, at 5.5 per cent of revenue, the company said, adding the total capex incurred during the quarter was Rs 42.7 crore.

On the outlook, Sadu said the proposed acquisition of Cenexi, the company's first acquisition overseas, will enable Gland to increase its presence and 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," he added.