Gland Pharma shares rose 8% to Rs 4,087.65 on the BSE in intraday trading on Thursday after the company reported significant revenue growth of 31% year-on-year to Rs 1,154 crores for the quarter ended June 2021. (Q1FY22). The company’s revenue for the year-ago quarter was Rs 884 crore.
The stock has traded at its highest level since listing on November 20, 2020. Over the past month, they have surpassed Sensex, climbing nearly 30 percent from a 0.44 percent rise in the index.
Gland Pharma said the revenue growth was driven by a combination of new product launches and increased volume of existing products. Key markets – the US, Canada, Europe and Australia – recorded 16 percent growth and generated 61 percent of revenue during the first quarter of fiscal year 22. These figures are driven by an increase in the number of key products such as micafungin, enoxaparin, heparin, dexmedetomidine, as well as new product launches.
India accounted for 20% of revenue in the first quarter of fiscal year 22 and grew 77% for the quarter over the same period last year. In a press release, it said that to support the needs of the domestic market during the second wave of Covid-19, the company increased its supply of essential drugs such as remdesivir and enoxaparin.
Meanwhile, the company’s after-tax profit jumped 12% YoY to Rs 351 crores from Rs 314 crores in the corresponding quarter of the previous fiscal year. It maintained a healthy Ebitda margin (earnings before interest, taxes, depreciation and amortization) at 41%.
Brokerage Motilal Oswal Financial Services raised its fiscal 22/23 earnings per share 8% each, taking into account increased coverage and penetration into RH / India markets, a better forecast for the US market and increased sales of remdesivir / enoxaparin. , as well as maintaining production efficiency, contributing to an increase in operating profit.
Brokerage activities remain positive for Gland Pharma thanks to its excellent scaling up of existing products, healthy build-up of a comprehensive product portfolio, continued investment in the vaccine / biological space, and ample room for inorganic growth.