Glenmark Pharma shares gained more than 3% on Wednesday’s trade, following the company’s announcement of double-digit revenue growth in the financial year 2023–24.
In an earnings conference call, the company disclosed that it expects consolidated revenue growth of 10–11% for the financial year 2023–24E.
Among the key objectives for the ongoing fiscal year, the pharmaceutical company aims at a consolidated research and development (R&D) investment of 8 to 8.5% of total sales, along with a consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) margin of over 19% to 20%.
The company forecasts margins of 19% by the upcoming financial year 2025. It has estimated a reduction of 200 basis points in the R&D segment, along with growth in markets, which will aid in the expansion of margins.
For FY24, Glenmark Pharma aims for a consolidated capital expenditure of ₹600 to ₹700 crore in addition to a priority to enhance free cash generation for further debt reduction. The company also expects to close at least one out‐licensing deal in the innovation pipeline by the financial year-end.
The pricing environment appears to be stabilising, as stated by the company in its Investor Presentation for the quarter ended September 30, 2023. The pharma player expects India’s business to grow around a healthy 12% to 15% over the next three years.
In the second quarter of FY24, Glenmark Pharma reported a 6.3% year-on-year (YoY) growth in consolidated revenue from operations at ₹3,587.9 crore. Its gross margin increased by 5.4% on a YoY basis to Rs 2,326.9 crore from Rs 2,208.5 crore in the same period last year.
Shares of Glenmark Pharma were trading 3.37% higher at ₹ 748.95 apiece on BSE at 1:22 PM.
(Edited by : Ajay Vaishnav)
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