Glenmark Life Sciences Ltd posted a total revenue of ₹5,784.5 million for the quarter ending in June (Q1FY24), registering a substantial 18% year-on-year increase. The net profit during this period also showed a noteworthy growth, standing at ₹1,354.5 million, which is a 24% increase compared to the previous year.
The active pharmaceutical ingredients (API) manufacturing arm of Glenmark Pharmaceuticals (GPL) witnessed a 14.1% YoY rise in the cost of raw materials, amounting to ₹2,982.13 million in the current fiscal year. The company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) reported a significant growth of ₹1,950 million, a 24.8% rise YoY. During the quarter, Glenmark Life Sciences demonstrated robust free cash generation, amounting to ₹982 million, leading to cash & cash equivalents of ₹3,820 million as of June 30.
Yasir Rawjee, managing director and chief executive of Glenmark Life Sciences, attributed the quarter’s strong performance to the success of the Generic API and the CDMO businesses. The company experienced growth across various geographic markets, including the US, Europe, Rest of the World (RoW), and India. Rawjee emphasized the company’s focus on strategic priorities, such as capacity building and strengthening the product pipeline. Along with an improved demand environment and supply situation, these efforts are expected to drive growth in the upcoming quarters.
The contract development and manufacturing operations (CDMO) segment of the company, constituting 8% of its overall business, recorded a revenue of ₹464 million in Q1FY24, a remarkable 91% growth YoY.
The Generic API revenues for Q1FY24 rose by 13.3% YoY to ₹5,042 million, primarily driven by strong growth in regulated markets of the US and Europe, along with a robust performance in the India market fueled by ex-GPL business. GPL business in Q1FY24 also increased by 18.6% YoY, amounting to ₹1,964 million, according to the company’s statement.
Glenmark Life Sciences revealed its plans for expansion, indicating the completion of a 208KL intermediate block at the Ankleshwar site, contributing to a total manufacturing capacity of 400 KL, which is expected to be operational in the second half of FY24. Additionally, the company is adding a 50KL pharma capacity this year in Dahej, Gujarat.
Glenmark Life Sciences specializes in the development and manufacturing of select, high-value, non-commoditized active pharmaceutical ingredients in chronic therapeutic areas. The company’s positive Q1FY24 results reflect its commitment to growth and expansion in the pharmaceutical industry.
