Gland Pharma on Thursday reported 72% year-on-year (YoY) drop in net profit to Rs 79 crores in Q4FY23 due to production shutdown at one of its facilities in Telangana and soft demand.

The company reported net profit of Rs 285 crores in the same quarter of the previous year.Revenue from operations slumped 29% YoY in Q4FY23 to Rs 785 crore in Q4FY23.

The company said production line shut down in Q4FY23 in Pashamylaram Penems facility due to line upgradation and reduced business from domestic B2C division along with softer off-take in rest-of-the world (ROW) market due to tender seasonality affected its revenues.

Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) for Q4FY23 came in at Rs 168 crores, down by 52% YoY. Gland’s EBITDA margins in Q4FY23 dipped 1100 basis points to 21%.

Research and Development (R&D) investments for the quarter stood at Rs. 67.8 crores corresponding to 8.6 per cent of its revenues. During Q4FY23, the company filed 9 ANDAs and received 7 ANDA approvals.

“We have formally closed the acquisition of Cenexi and welcome it to be a part of the Gland-Fosun family. This is our first overseas acquisition and our move into the next phase of growth and expansion. We made progress on our path to building a Bio-CDMO and signed our first contract for Plasma Protein at our Shamirpet facility,” said Srinivas Sadu, MD and CEO of Gland Pharma.

“Our progress on the complex portfolio is in-line with the plan and this year we filed a total of 3 complex products during the year. Our priority for the next year shall be seamless integration of Cenexi along with a focus on driving sustainable business growth,” Sadu added.