Glenmark Life Sciences Shares Slipped Over 2%: Announced Q2 FY25 Results

Glenmark Life Sciences Limited (GLS), a leading developer and manufacturer of specialized, high-value Active Pharmaceutical Ingredients (APIs) for chronic therapeutic areas, has announced its financial results for the quarter and half-year ended September 30, 2024. For the first half of FY25, GLS reported revenue from operations of ₹10,955 million, representing a 6.7% year-over-year decline. 

In Q2FY25, revenue from operations reached ₹5,069 million. EBITDA for H1FY25 was ₹3,079 million, down 16.2% year-over-year, with EBITDA margins at 28.1%. For Q2FY25, EBITDA amounted to ₹1,429 million, with EBITDA margins improving to 28.2%, an increase of 20 basis points quarter-over-quarter. Profit After Tax (PAT) for H1FY25 was ₹2,068 million, while for the quarter, it stood at ₹953 million. The company generated a strong free cash flow of ₹1,340 million during H1FY25, resulting in cash and cash equivalents of ₹4,461 million as of September 30, 2024.

Q2 FY25 Business Highlights

GLS has continued to expand its market presence, with Drug Master File (DMF) and Certificate of Suitability (CEP) filings totalling 539 as of September 30, 2024. In Q2FY25, the company added four new products to its development pipeline, including one high-potency API (HP API) in the oncology category and three synthetic small molecules. The HP API portfolio now comprises 21 products, targeting an addressable market of $43 billion, with six products validated and five in advanced stages of development.

Glenmark Life Sciences Capex Update

In terms of capital expenditure, GLS reported that a new capacity of 208 KL became operational in Ankleshwar during Q2FY25. Additionally, 18 KL of pharmaceutical capacity was brought online in Dahej. Construction has commenced on Phase 1 of a 200 KL capacity expansion in Solapur, with further capacity increases planned based on market demand.

Commenting on the company’s performance Dr. Yasir Rawjee, MD & CEO, Glenmark Life Sciences Limited 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 the high single digits, we are confident in maintaining stable margins throughout the year.”

Tushar Mistry, CFO  of Glenmark Life Sciences Limited 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.” 

On October 25, 204, Glenmark Lifesciences shares opened at ₹1,019.95 and touched the day low of ₹1,004.00 at 09:30 AM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.