India's Gland Pharma reports higher Q3 profit as expenses drop

Gland Pharma

03/02/2025 12:25

Feb 3 (Reuters) - Indian generic injectables maker Gland Pharma  GLAD.NS  reported a 7% rise in
third-quarter profit on Monday, as lower expenses helped mitigate the impact from production issues at its
French unit Cenexi.
    The company reported consolidated net profit of 2.05 billion rupees ($23.5 million) for the quarter ended
Dec. 31, in-line with analysts' estimates of 2.04 billion rupees, as per data compiled by LSEG.
    Revenue from operations declined 10.4% to 13.84 billion rupees, falling short of analysts' expectations.
However, its total expenses also dropped 11% due to lower inventory costs.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3OU0HC.
    
    KEY CONTEXT
    Production setbacks at Cenexi's sites in Paris and Belgium and hurt revenue, Gland Pharma said in a press
release.
    Sales from Gland Pharma's Europe business fell 19%, while U.S. sales dropped 11%.
    Most Indian generic drugmakers derive a significant share of revenue from the U.S., where intensifying
competition has proven a drag on their earnings.
    Rivals Sun Pharma  SUN.NS  and Cipla  CIPL.NS  beat third-quarter profit estimates, while Dr Reddy's
 REDY.NS  missed expectations. All three drugmakers saw muted growth in the North American market, including the
U.S.
    
    PEER COMPARISON  
                                                 Estimates (next 12         Analysts' sentiment         
                                                      months)                                           
                      RIC        PE     EV/EBI  Revenue    Profit     Mean     # of      Stock to       Div
                                        TDA     growth     growth     rating*  analysts  price          yield
                                                (%)        (%)                           target**       (%)
 Gland Pharma Ltd      GLAD.NS   25.10   13.80    11.96      27.51    Hold           10      0.89           1.31
 Zydus Lifesciences    ZYDU.NS   21.34   14.42    7.84       4.22     Hold           28      0.89           0.31
 Ltd                                                                                                    
 Cipla Ltd             CIPL.NS   22.94   14.46    8.20       5.96     Buy            33      0.88           0.88
 Dr Reddy's            REDY.NS   17.20   10.77    10.17      6.15     Hold           35      0.90           0.66
 Laboratories Ltd                                                                                       
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading
above the PT
    
    OCTOBER TO DECEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 87.1020 Indian rupees 

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 (Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))