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The company's revenue from the Generic API segment increased 1.8% year on year to Rs 479.89 crore during the quarter driven by growth across all geographies. The regulated markets business continued the strong growth momentum. India, Europe and LATAM delivered strong performance while US witnessed healthy recovery.
CDMO revenues in Q3 FY23 decreased by 31.1% YoY to Rs 27.94 crore, demand is expected to be picked up from Q4 FY23.
EBITDA stood at Rs 152.06 crore for Q3 FY23 while EBITDA margin was 28.1%; remained steady on YoY basis with a slight sequential decline, mainly due lower gross margins.
Commenting on the company's performance, Dr. Yasir Rawjee, MD & CEO of Glenmark Life Sciences said, “I am pleased to report that the company has continued its upward trajectory to witness steady growth both on sequential as well as YoY basis on the back of a robust performance of our external business. India, Europe and LATAM were the main catalysts for growth whereas US witnessed healthy recovery. The GPL business saw strong recovery in the current quarter while the CDMO business was sluggish, and we expect it to pick up strongly from Q4 onwards.”
Dr. Rawjee further added, “During 9M FY23, we launched 5 new products, and we continue to cross sell our wide product basket to existing customers across different geographies. Overall, as the three levers of the business (external business, GPL and CDMO) are on track to perform well, I am confident of delivering steady growth with stable margins in the coming quarters.”
Tushar Mistry, CFO at Glenmark Life Sciences said, “The company continues to grow steadily with revenue from operations growing 3.5% on YoY basis and 6.2% sequentially. EBITDA for the quarter at 28.1% was steady on YoY basis. Our proactive cost control measures have helped us maintain our EBITDA margins for the nine-months at 30%.”
“We are also witnessing increased capacity as Dahej block comes online. That said, we are strategically commissioning the Dahej block module-wise to keep expenses under control which will ensure steady margins in the coming quarters. Our prudent working capital management during the quarter has led to healthy cash flow generation from the operations. Reviving demand in the regulated markets and GPL business supported by excess capacity availability will propel growth in coming quarters,” he added.
Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.
Shares of Glenmark Life Sciences closed 0.86% lower at Rs 386.60 on the BSE.
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