Conference Call with Glenmark Life Sciences Management and Analysts on Q1FY25 Performance and Outlook. Listen to the full earnings transcript.
Pharmaceuticals company Glenmark Life Sciences announced Q1FY25 results: Financial Highlights: For Q1FY25, GLS registered a revenue from operations of Rs 5,886 million, recording a growth of 9.7% QoQ and 1.8% YoY. EBITDA for Q1FY25 was at Rs 1,650 million, a growth of 14.1% QoQ and EBITDA margins were at 28%, up 110 bps QoQ. PAT for Q1FY25 was at Rs 1,115 million, a growth of 13.9% QoQ. During Q1FY25, company generated strong free cash flow of Rs 1,213 million, leading to Cash and Cash Equivalents of Rs 4,263 million as of 30 June, 2024. Business Highlights: Generic business in Q1 FY25 grew by 10.5% QoQ and 6.2% YoY to Rs 5,354 million whereas CDMO business grew by 20.2% QoQ to Rs 425 million. DMF / CEPs filing continue across major markets, taking the total cumulative filings to 532 as on 30 June 2024 In Q1FY25, Addition of 5 new products to the development grid, of which 3 products are High potent API (HP API) / Oncology class of drugs and 2 are synthetic small molecules. The HP API portfolio now extends to 20 products with an addressable market of USD 40 billion (Source: IQVIA, MAT Mar’24); 4 products are validated, and 4 products are in advanced stages of development. Commenting on the company’s performance Yasir Rawjee, MD & CEO, Glenmark Life Sciences said, “We are pleased to report broad-based revenue growth for the quarter, where, as anticipated, growth has picked up sequentially. Our Generic API business experienced a robust 10.5% QoQ and 6.2% YoY growth. YoY growth was led by Europe, LATAM and RoW. The GPL business saw a significant recovery this quarter. With the key drivers of our business - GPL, Non-GPL and CDMO performing well, we anticipate delivering steady growth with stable margins throughout FY25.” Tushar Mistry, CFO, Glenmark Life Sciences said, “Q1FY25 has been marked by a recovery in growth. While gross margins were impacted by the discontinuation of the PLI benefit to GLS as well as product mix, employee costs have normalized, leading to stable EBITDA margins of 28% for Q1FY25. We are optimistic about maintaining the growth momentum for the rest of the year. GLS generated strong cash flow of Rs. 121 crores during the quarter, further strengthening our debt-free balance sheet.” Result PDF