Glenmark Life does well

Glenmark Lifesciences, even in this terrible market is posting major gains, currently the top gainer on the BSE. The stock, which had closed on Friday at Rs.879.80, opened lower today at Rs.835 but soon jumped up to Rs.955.05, and is now trading over 6% higher at Rs.940 levels. Its 52-week high is at Rs.970.

The company had a analysts meet on Friday and this has spread optimism. For Q1FY25, the company pisted a 10% (QoQ) jump in revenue from operations at Rs.588 crore, Gross profit was at Rs.301 crore, though margins slipped from 51.1% to 55.5% and this was attributed to the discontinuation of PLI benefit as well as product mix. The EBITDA for Q1 FY '25 stood at Rs.165 crore, up 14.1% with EBITDA margins at 28%, which was within its guided range. Starting this quarter, employee costs have normalized and have come down under 10% of revenue mark. PAT for the quarter stood at Rs.111 crore with PAT margins of 18.9%.

The company remains debt free and during current Q1, it generated strong free cash flow of Rs.121 crore, leading to cash and cash equivalents of Rs.426 crore as of 30 June, 2024.

The management said that it is hopeful of continuing the growth momentum in coming quarters with stable margins on the back of improving demand environment.

As on June 30, its total DMF and CEP filings crossed 532 with cardiovascular and central nervous system disorder therapies seeing the highest filings to the tune of 251.

The company added 5 new products to their pipeline with 3 high potency APIs and 2 synthetic small molecules. So all in all, the high-potency API pipeline is now 20 products with a total addressable market of 40 billion, 4 products have already been validated and 4 are in advanced stages of development.

Its additional capacities at Ankleshwar will kick in, in quarter 2 and at Dahej, its new pharma capacity will also become operational in quarter 2.