- 26 Jul 2024
- ICICI Securities
GLS Q1FY25 – YoY numbers muted but sequential recovery solid; GPCB notice to Ankleshwar slightly worrisome
GLS - 1053 Change: 46.50 (4.62 %)News: Revenues grew 5%/11% on YoY/QoQ basis to ₹ 578 crore driven by non-Glenmark API sales which grew 10%/7% on YoY/QoQ basis to ₹ 339 crore. API sales to Glenmark Pharma on the other hand were flat on YoY basis but grew ~18% QoQ to ₹ 196 crore. CDMO sales de-grew 5% YoY but grew ~20% QoQ to ₹ 42.5 crore on expected lines as the major deal traction is expected in H2. EBITDA de-grew ~18% YoY but grew ~13% QoQ to ₹ 160 crore. PAT de-grew 18% YoY but grew 14% QoQ to 112 ₹ crore.
Views: The numbers reflect a steady path under the new regime with most of the parameters improving sequentially. The only blot was GPM which were down on YoY as well as QoQ basis (even after considering the loss of PLI benefits). The management expects decent growth in the coming quarters and has maintained the capex guidance. That said, the Gujarat Pollution Control Board’s (GPCB) notice for the closure of Ankleshwar plant is a cause for concern and we await further clarification from the management on the same.
Impact: Neutral