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Cenexi turnaround delays
View Risks →Gland Pharma Limited — Q2 FY25
Gland Pharma's Q2 FY25 consolidated revenue grew 2% YoY to INR 1,406 crore, with base business up 5% to INR 1,066 crore.
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Gland Pharma's Q2 FY25 consolidated revenue grew 2% YoY to INR 1,406 crore, with base business up 5% to INR 1,066 crore. Consolidated EBITDA margin contracted 200bps to 21%, dragged by Cenexi's negative EBITDA of INR 68.5 crore due to extended summer shutdown for new ampoule line installation. Base business EBITDA margin held steady at 34%. PAT declined 16% YoY to INR 164 crore. U.S. revenue grew 3% YoY, while ROW markets saw delays in Saudi Arabia offtake. Management expects low double-digit full-year revenue growth, driven by new product launches and Saudi recovery. Cenexi targets positive EBITDA by Q4 FY25 and breakeven next fiscal year. A biologics CDMO partnership with Dr. Reddy's was signed, with initial benefits expected from Q1 FY26. Risk: Cenexi's turnaround may be delayed if new capacity ramp-up or commercial production slips.
ग्लैंड फार्मा की दूसरी तिमाही (जुलाई-सितंबर 2024) में कुल कमाई 2% बढ़कर ₹1,406 करोड़ हुई। मुख्य कारोबार (Cenexi को छोड़कर) में 5% की बढ़ोतरी से ₹1,066 करोड़ आया। मुनाफा मार्जिन (EBITDA) 21% रहा, जो पिछले साल से 2% कम है। इसकी वजह Cenexi का ₹68.5 करोड़ का घाटा है, क्योंकि नई एम्प्यूल लाइन लगाने के लिए गर्मियों में लंबी छुट्टी ली गई। मुख्य कारोबार का मार्जिन 34% स्थिर रहा। शुद्ध मुनाफा (PAT) 16% घटकर ₹164 करोड़ रहा। अमेरिका में कमाई 3% बढ़ी, लेकिन सऊदी अरब में ऑर्डर में देरी हुई। कंपनी को पूरे साल कम दो अंकों की बढ़ोतरी की उम्मीद है, नए उत्पादों और सऊदी सुधार से। Cenexi मार्च 2025 तक लाभ में आने का लक्ष्य है। डॉ. रेड्डीज के साथ जैविक दवाओं का साझेदारी समझौता हुआ, जिसका फायदा अप्रैल 2025 से मिलेगा। जोखिम: अगर Cenexi का नया उत्पादन देर से शुरू हुआ तो घाटा बढ़ सकता है।
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U.S. Revenue Growth
3%
+3% YoY
U.S. sales increased 3% year-over-year, driven by existing product uptake and new launches.
Base Business EBITDA Margin
34%
0% YoY
Base business EBITDA margin remained steady at 34%, similar to Q2 FY24.
New Product Contribution in U.S.
INR 60 Cr
N/A
New products launched in H1 contributed approximately INR 60 crore to U.S. revenue.
Cash Conversion Cycle
149 days
-47 days YoY
Cash conversion cycle improved to 149 days from 196 days in Q2 FY24.
What Changed vs Last Quarter
NEW
Cenexi EBITDA breakeven next fiscal year
Cenexi aims for EBITDA breakeven in FY26, driven by revenue above EUR 200 million threshold.
NEW
Biologics CDMO initial benefits from Q1 FY26
The Dr. Reddy's biologics CDMO collaboration is expected to generate initial financial benefits from Q1 FY26.
UPDATED
Low double-digit revenue growth for FY25
Management expects full-year revenue growth in low double-digits, driven by new launches, Saudi recovery, and steady U.S. base business.
UPDATED
Cenexi positive EBITDA by Q4 FY25
Cenexi targets positive EBITDA in Q4 FY25, supported by new ampoule line commercial production starting January 2025.
DROPPED
Base business EBITDA margin 30-33% for FY25
Management guided base business EBITDA margin in the range of 30-33% for the full year.
DROPPED
Cenexi revenue to exceed EUR 200 million in FY26
Cenexi expects revenue to exceed EUR 200 million in the next fiscal year, driving positive EBITDA.
NEW RISK
U.S. revenue stagnation
U.S. revenue has been flat for three quarters despite multiple launches; growth may not materialize as expected if new contracts or Saudi offtake are delayed.
NEW RISK
Cenexi gross margin volatility
Cenexi gross margin fell sharply to 69% due to product mix; may not normalize quickly if site-level issues persist.
NEW RISK
Biologics CDMO revenue uncertainty
Management declined to provide peak revenue potential for the Dr. Reddy's partnership, indicating early-stage and uncertain financial impact.
RISK GONE
U.S. pricing pressure and product mix
U.S. market remains crowded; low-margin GPO contract and milestone income volatility could pressure margins.
RISK GONE
Biologics collaboration execution risk
Discussions for a strategic biologics collaboration are early-stage; may require significant investment with uncertain timeline.
RISK GONE
Fosun stake sale overhang
Fosun sold a large stake in the quarter; management has no visibility on future share sales, which could impact sentiment.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY24, Q3 FY24
Management guided base business EBITDA margin in the range of 30-33% for the full year.
Mentioned in Q1 FY25, Q4 FY24
Management expects base business (ex-Cenexi) to grow in mid-teens for the full fiscal year.
Mentioned in Q1 FY24, Q2 FY24
Cenexi's annual summer shutdown (4 weeks in France, 3 in Belgium) will continue to cause revenue loss and negative EBITDA in Q2 each year.
Mentioned in Q2 FY24, Q3 FY24
New programs in tech transfer and approval stages are expected to add EUR 30-40 million to Cenexi's annual revenue in the medium term.
Mentioned in Q1 FY24, Q2 FY24
Management declined to provide a timeline for Cenexi reaching 13-15% EBITDA margins, citing early stage of integration.
Fast read
Guidance and risk preview
Management expects full-year revenue growth in low double-digits, driven by new launches, Saudi recovery, and steady U.S.
Cenexi's path to profitability may be delayed if new capacity ramp-up or commercial production timelines slip, or if lyophilizer issues recur.
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