Glenmark Life Sciences Limited (BSE: 543322, NSE: GLS), a prominent player in the pharmaceutical industry, has announced impressive financial results for the quarter ended June 30, 2024. The company’s revenue surged by 9.7% quarter-on-quarter (QoQ), reaching ₹5,886 million. This growth reflects a solid 1.8% increase year-on-year (YoY), underlining Glenmark Life Sciences’ strong performance amidst challenging market conditions.

For Q1FY25, Glenmark Life Sciences achieved a notable EBITDA of ₹1,650 million, marking a significant 14.1% QoQ growth. The company’s EBITDA margin stood at 28%, up by 110 basis points (bps) from the previous quarter. Profit After Tax (PAT) also saw a robust increase of 13.9% QoQ, reaching ₹1,115 million. The company generated strong free cash flow of ₹1,213 million, bolstering its cash and cash equivalents to ₹4,263 million as of June 30, 2024.

Glenmark Life Sciences Limited’s Growth Trajectory

Dr. Yasir Rawjee, Managing Director and CEO of Glenmark Life Sciences Limited, expressed satisfaction with the company’s financial performance. He noted that the broad-based revenue growth and sequential improvement in performance were in line with expectations. Dr. Rawjee highlighted the strong growth of the Generic API business, which saw a robust 10.5% QoQ increase and 6.2% YoY growth. This growth was driven primarily by markets in Europe, Latin America, and the Rest of the World (RoW). Additionally, the company’s GPL, Non-GPL, and Contract Development and Manufacturing Organization (CDMO) segments performed well, positioning Glenmark Life Sciences for continued growth throughout FY25.

Tushar Mistry, Chief Financial Officer of Glenmark Life Sciences Limited, commented on the quarter’s performance, noting that while gross margins were impacted by the cessation of the Production Linked Incentive (PLI) benefit and changes in product mix, employee costs had normalised. This led to stable EBITDA margins of 28% for the quarter. Mistry expressed optimism about maintaining growth momentum and highlighted the company’s strong cash flow generation, which has strengthened its debt-free balance sheet.

Key Highlights and Developments

During Q1FY25, Glenmark Life Sciences saw notable developments in its business operations. The Generic API segment grew by 10.5% QoQ and 6.2% YoY, with revenue reaching ₹5,354 million. The CDMO segment also saw significant growth, increasing by 20.2% QoQ to ₹425 million. The company’s DMF/CEPs filings continued to progress, with a total of 532 cumulative filings as of June 30, 2024.

Glenmark Life Sciences added five new products to its development grid during the quarter. This includes three high-potency API/oncology drugs and two synthetic small molecules. The company’s high-potency API portfolio now comprises 20 products with an addressable market of $40 billion, as reported by IQVIA. Four of these products are validated, while four are in advanced stages of development.

Capital Expenditure and Facility Updates

The company made significant strides in its capital expenditure plans. At the Ankleshwar site, the construction of an additional 208 KL capacity out of a total 400 KL for intermediate blocks has been completed and will be operational in Q2FY25. The Dahej facility is validating an 18 KL pharma capacity, also set to become operational in Q2FY25. Additionally, construction has commenced for a 200 KL capacity in Solapur, with further expansion plans contingent on demand.

Company Overview

Glenmark Life Sciences Limited is renowned for its development and manufacturing of high-value, non-commoditised Active Pharmaceutical Ingredients (APIs) across chronic therapeutic areas such as cardiovascular disease, central nervous system disorders, pain management, and diabetes. The company also provides Contract Development and Manufacturing Organization (CDMO) services to a diverse range of multinational and specialty pharmaceutical companies. Glenmark Life Sciences operates four manufacturing facilities located in Ankleshwar, Dahej, Mohol, and Kurkumbh, with a combined installed capacity of 1,198 KL. These facilities are subject to regular inspections by global regulatory agencies including the USFDA, PMDA (Japan), and EDQM (Europe). Glenmark Life Sciences is a subsidiary of Nirma Limited and is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

  Ankleshwar, API, CDMO, Dahej, Glenmark Life Sciences, Nirma Limited, Solapur, Tushar Mistry, Yasir Rawjee