Gland Pharma has revealed its financial results for the first quarter of FY25, ending June 30, 2024.

The company has demonstrated strong growth with significant year-over-year (YoY) increases in revenue, despite facing challenges in its consolidated EBITDA margins.

For Q1 FY25, Gland Pharma reported a consolidated revenue of INR 14,017 million, marking a 16 percent increase compared to INR 12,087 million in Q1 FY24. This growth was predominantly driven by the US market, which saw a 27 percent increase in revenue, propelled by existing products and the introduction of new ones.

However, the company’s consolidated EBITDA decreased by 11 percent YoY to INR 2,654 million from INR 2,982 million in Q1 FY24. The EBITDA margin also declined to 19 percent from 25 percent in the same period last year. This decrease was primarily attributed to the performance of Cenexi, a recent acquisition by Gland Pharma.

In terms of profit before tax (PBT), Gland Pharma reported INR 2,182 million, a decline of 16 percent from INR 2,613 million in Q1 FY24. The PBT margin stood at 16 percent, down from 22 percent in the previous year. Meanwhile, the profit after tax (PAT) for Q1 FY25 was INR 1,438 million, reflecting a 26 percent decrease from INR 1,941 million in Q1 FY24, with a PAT margin of 10 percent.

Excluding the performance of Cenexi, Gland Pharma’s base business showed robust growth. The base business revenue increased by 14 percent YoY to INR 10,134 million from INR 8,873 million in Q1 FY24. The base business EBITDA rose by 12 percent to INR 2,941 million from INR 2,636 million in the previous year, with an EBITDA margin of 29 percent, slightly down from 30 percent.

The base business PBT also saw an improvement, reaching INR 3,006 million, an 18 percent increase from INR 2,537 million in Q1 FY24. The PAT for the base business was INR 2,248 million, a 20 percent rise from INR 1,873 million in the same period last year, with a PAT margin of 22 percent.

Cenexi, acquired by Gland Pharma, contributed to the overall revenue but faced challenges in profitability. The revenue from Cenexi increased by 21 percent YoY to INR 3,883 million from INR 3,214 million. However, the EBITDA for Cenexi showed a loss of INR 286 million, compared to a profit of INR 347 million in Q1 FY24, resulting in an EBITDA margin of -7 percent.

The US market continued to be the largest contributor, with revenue reaching INR 7,628 million, a 27 percent increase from INR 6,021 million in Q1 FY24. In Europe, the company reported revenue of INR 2,566 million, marking a 15 percent growth. Other core markets, including Canada, Australia, and New Zealand, saw the most significant growth of 72 percent, with revenue rising to INR 447 million. However, the Indian market experienced a decline, with revenue dropping by 19 percent to INR 527 million.

Gland Pharma's strong financial performance in Q1 FY25 reflects its strategic focus on expanding its market presence and leveraging its product portfolio in key regions, particularly the US. The company remains optimistic about achieving its fiscal year targets despite the challenges faced in certain segments.