With a market capitalization of Rs 17,550 crores, Gland Pharma Limited’s stock started its trading session today at Rs 1,160, and, as of 10:00 am, the scrip is locked in the 20 percent lower circuit marked at Rs 1,065.60.
Such a sharp movement in the stock prices is observed after the company announced its Q4 as well as annual results for the financial year 2022-2023. Details of the same are discussed later on in the piece.
Gland Pharma Limited is engaged in the process of manufacturing, development, and marketing of complex injectables. Its key molecules include Enoxaparin Sodium Injection, Daptomycin Injection, Heparin Sodium Injection, etc.
In addition, the company is also involved in a vast range of therapeutic categories including Anesthetics, Anti-Infectives, etc. Geographically, it derives a majority of its revenue from the United States of America.
Having a walkthrough of the financials, the company, on a QoQ basis, has reported a decline as far as the operating revenues and net profits are concerned. The operating revenues moved down from Rs 938 crores in Q3 to Rs 785 crores in Q4. Moreover, the net profits went down from Rs 232 crores to Rs 79 crores representing a decline of around 66 percent.
On a YoY basis as well, the company has underperformed with a downfall in the above-mentioned metrics. The operating revenues reduced from Rs 4,400 crores during FY21-22 to Rs 3,625 crores in FY22-23 and net profits, keeping the timeframe the same, slipped from Rs 1,212 crores to Rs 781 crores indicating a 36 percent decrease.
Coming onto the basic margin ratios of the company, the EBITDA margins as well as PAT margins have gone down on a sequential basis with the former going down from 31 percent during Q3 to 21 percent in Q4 and the latter moving from 25 percent to 10 percent in the same time horizon.
As per the latest shareholding pattern data available for the March quarter, promoters hold a 57.86 percent stake, and Foreign Institutional Investors hold a 4.32 percent stake in the company.
Written by Amit Madnani
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