Glenmark Life Sciences –
Q3 FY 24 concall summary –
Sales – 573 vs 541 cr
EBITDA – 173 vs 145 cr ( margin @ 30 vs 27 pc )
PAT – 119 vs 105 cr
Seeing better demand outlook from North America. Reported good growth across LATAM, India, US, RoW Mkts. EU business was flattish, Japan business de-grew due some inventory correction issues
CMO business ( generic molecules ) seeing descent uptick. Seeing increased enquiries from multiple customers
Company’s revenue breakdown by geography –
EMs – 22 pc
Europe – 22 pc
India – 24 pc
LATAM – 16 pc
US – 11 pc
Japan – 6 pc
Therapy wise revenue breakdown –
Diabetes – 4 pc
CNS – 17 pc
Cardiovascular – 41 pc
Pain management – 6 pc
Others – 32 pc
R&D expenses for Q3 at 18 cr @ aprox 3 pc of sales
Expect to end FY 24 with a capex of 150-160 cr
Remain net debt free with net cash balance of around 135 cr on the books
Q4 LY was a strong Qtr. Expecting Q4 in this FY to be relatively softer
Gross margins expanded due to 2 reasons – lower RM costs and higher CMO business where the margins are higher
Most of company’s exports to US, EU are air lifted and are hence not affected by the disruptions in Red sea
Q3 employee costs are elevated due performance linked bonuses issued to management. Likely to remain elevated in Q4 too. Should normalise in FY 25
Expecting CMO business to go to > 600 cr/yr in next 4-5 yrs from a current annual run rate of 150 cr/yr. This should help improve company’s Gross Margin profile
Company is now focussing on Onco segment to expand their product basket
Disc: hold a small tracking position, not SEBI registered, biased
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