Gland Pharma Q4 results: Net profit rises 34%; Share Price Hits New 52-Week High

Gland Pharma shares surged as high as 10% to hit a fresh 52-week high of Rs 3,136.5 apiece in intra-day trade today after the company posted robust March quarter (Q4FY21) numbers.

The pharma company's share price made a market debut in November 2020 and were listed at Rs 1,701 per share, as against the initial public offering (IPO) price of Rs 1,500 apiece.

Financial Highlights

Gland Pharma, a generic injectable focused pharmaceutical company, on Monday reported a 34% rise in its consolidated net profit to Rs 2.6 bn for the fourth quarter ended March 2021.

This was on account of robust sales.

The company had posted a net profit of Rs 1.9 bn for the corresponding period of the previous fiscal year.

For the full fiscal year 2021, the company posted a net profit of Rs 10 bn as against Rs 7.7 bn in the previous year.

Operational Performance

Consolidated revenue from operations of the company stood at Rs 8.9 bn for the quarter under consideration. It was Rs 6.4 bn in the year-ago period.

For the financial year ended March 2021, the company's consolidated revenue from operations was Rs 34.6 bn. It was Rs 26.3 bn in the preceding fiscal year.

The company's consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) in the quarter rose 31% year on year (YoY) to Rs 3.7 bn, compared to Rs 2.9 bn recorded in the last year.

For the full fiscal year 2021, EBITDA stood at Rs 14.4 bn, up 31%, compared to Rs 10.9 bn reported in the previous financial year.

The company maintained a healthy EBITDA margin of 40% and profit after tax (PAT) margin of 28% during the quarter.

Gland Pharma has also reported earnings per share (EPS) of Rs 63 for the 12 months period ended 31 March 2021, compared to Rs 49.9 in FY20

Commenting on the results, Mr Srinivas Sadu, MD & CEO of Gland Pharma said,

• Overall, the business has performed well and grew steadily during these challenging times. For the financial year 2020-21, we witnessed a revenue growth of 32% and net profit growth of 29% compared to the previous year.
  
  The company continued to maintain a healthy margin profile with EBITDA margin at 40% and PAT margin at 28%. New product launches, volume growth in our existing portfolio, along with geographic expansion has led to strong business growth across all markets.
  
  Our new vaccine business is expected to accelerate our long-term strategy of entering into Biosimilar space.

Key Financial Indicators

Particulars (Rs in bn)	Q4FY21	Q4FY20	Growth	FY21	FY20	Growth
Revenue from operations	8.9	6.4	40%	34.6	26.3	32%
Total income	9.4	6.8	37%	36	27.7	30%
EBITDA	3.7	2.9	31%	14.4	10.9	31%
EBITDA margin (%)	40%	42%		40%	39%
PAT	2.6	1.9	34%	10	7.7	29%
PAT margin (%)	28%	29%		28%	28%

Data Source: Investor Presentation

Marketwise Revenue

The below table shows Gland Pharma's market wise revenue.

The company registered a stable growth in markets of USA, Europe, Canada and Australia during the quarter and for the full year ended 31 March 2021 on back of new launches and volume growth in existing portfolio supported by the increased capacity.

Gland Pharma has launched new products like micafungin and bivalirudin in RTU format as well as olopatadine ophthalmic product in branded market.

The company has reported a strong growth in the rest of the world driven by new partnerships and increased penetration geographically.

It has also entered new markets like Singapore, Israel, Saudi Arabia, and CIS Countries.

In Domestic markets, the company has ramped up Remdesivir supply and maintained sufficient supply of enoxaparin to support the requirement of Covid-19 patients.

Gland Pharma's Capital Expenditure

Total capex incurred during the financial year ended 31 March 2021 was Rs 2,288 m compared to Rs 1,947 million for the previous financial year.

The company is expanding its sterile injectable facility located in Hyderabad.

It is also enhancing its production capacity for active pharmaceutical ingredients (APIs) in Vizag and adding capacity in its oncology facility to take care of the planned launches in forthcoming years.

Additionally, the company will be investing in the drug substance and biologics facility for creating robust infrastructure in vaccine and bio-similar space.

How the Stock Markets Reacted to Gland Pharma Q4FY21 Numbers Today

Shares of Gland Pharma opened the day at Rs 2,900 on the BSE and Rs 2,910 on the NSE.

Gland Pharma share price closed at Rs 3,064 (up 9.7%) on the BSE and Rs 3,063 (up 9.6%) on the NSE.

At its current price, it is trading at a P/E of 44.3.

The share also touched its 52-week high of Rs 3,134.6 and 52-week low of Rs 1,500 on 18 May 2021 and 20 November 2020.

Over the last 30 days, the Gland Pharma share price is up 23.2%. Over the last three months, the company's share price is up 28%.

About Gland Pharma

Gland Pharma was established in 1978 in Hyderabad, has grown over the years from a contract manufacturer of small volume liquid parenteral products, to become one of the largest and fastest growing injectable focused companies, with a global footprint across 60 countries, including the United States, Europe, Canada, Australia, India, and other markets.

It operates primarily under a business to business (B2B) model and have an excellent track record in the development, manufacturing and marketing of sterile injectables.

The company has a wide range of injectables, including vials, ampoules, pre-filled syringes, lyophilized vials, dry powders, infusions, oncology, and ophthalmic solutions. It also enjoys the distinction of having pioneered Heparin technology in India.

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