Gland Pharma faces a revenue growth hurdle in FY23; stock falls

The low margin syringes business was impacted by supply chain challenges and shutdown of two manufacturing lines in the domestic market

The stock of Gland Pharma slipped about 6 per cent in trade on Thursday on the back of a muted show in the June quarter. Brokerages cut their earnings estimates for the current financial year by up to 20 per cent reflecting the muted expectations.

The revisions are largely on account of supply chain issues, sharp decline in revenues for the current year in India and rest of the world (RoW) markets and higher operating expenditure. Due to these reasons, most brokerages expect overall revenues to be static in the current year as compared to financial year 2021-22.

Rahul Jeewani