- 25 Oct 2024
- ICICI Securities
GLS Q2FY25 – WASHOUT QUARTER UNDONE BY ANKLESHWAR FACILITY CLOSURE FOR +22 DAYS
News: Revenues de-grew 12% YoY to ₹ 498 crore with across-the-board de-growth on account of Ankleshwar facility closure. Non-Glenmark API sales de-grew 17% to ₹ 285 crore. API sales to Glenmark Pharma de-grew ~6% to ₹ 189 crore. CDMO sales de-grew 5% to ₹ 24 crore. EBITDA de-grew ~20% YoY to ₹ 134 crore. PAT de-grew 20% YoY to 95 ₹ crore.
Views: On 24th July 2024, the Ankleshwar facility of GLS received closure notice from GPCB which was subsequently revoked on 14th August. This facility accounts for almost 2/3rd of the overall company production. The temporary closure of Ankleshwar facility has resulted in delayed servicing of orders, impacting the quarter revenue across geographies. However, as per management, the loss of production has substantially been recovered and it expects H2FY25 to be better than the earlier estimates.
Impact: Neutral