Glenmark Life drops after PAT slides 20% YoY to Rs 95 crore in Q2

Profit before tax (PBT) dropped 19.8% YoY to Rs 127.46 crore in the quarter ended 30 September 2024.

EBITDA stood at Rs 142.9 crore in Q2 of FY25, registering de-growth of 17.16% on YoY basis. In Q2 FY25, EBITDA margin reduced to 28.2% as against 29% in Q2 FY24.

Generic API Business declined 12.69% to Rs 473.9 crore and CDMO business declined 5.14% to Rs 24 crore in Q2 FY25 over Q2 FY24.

DMF / CEPs filing continue across major markets, taking the total cumulative filings to 539 as on 30 September 2024.

In Q2 FY25, added 4 new products to the development grid, of which 1 product are high potent API (HP API) / Oncology class of drugs and 3 are synthetic small molecules.

Revenue from GPL business fell marginally to Rs 188.8 crore in Q2 FY25 as compared with Rs 200 crore in Q2 FY24. GPL business contributes 37% of the total revenue from operations.

Dr. Yasir Rawjee, MD & CEO, Glenmark Life Sciences said, 'The temporary closure of Ankleshwar facility has resulted in delayed servicing of orders, impacting the quarter revenue across geographies. However, the loss of production has substantially been recovered and we expect H2FY25 to be better than the earlier estimates.

A key highlight is that our product mix has led to better gross margins i.e. above 55%. Looking ahead, we expect a strong second half of the fiscal year, supported by our solid order book. While overall growth for FY25 is projected to be in high single digits, we are confident in maintaining stable margins throughout the year.'

Tushar Mistry, CFO, Glenmark Life Sciences said, 'I am pleased to share that despite the temporary setback, our gross margins improved both year-on-year and sequentially, returning to approximately 55.6%, while EBITDA margins remained steady at around 28.2%. GLS generated a solid cash flow of Rs. 134 crores during H1FY25, enabling continued growth and allowing us to maintain a debt-free balance sheet.'

Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.