Gland Pharma Announces Maiden Dividend Post-Listing Amidst Mixed Financial Performance

Gland Pharma, the Hyderabad-based pharmaceutical company, declared its first-ever dividend since going public in 2020. The company announced an equity dividend of ₹20 per share, resulting in an outflow of ₹329 crore and a dividend payout ratio of 43%.

Financial Highlights

For the fiscal year 2024, Gland Pharma reported a 56% growth in revenue, reaching ₹5,665 crore. This growth was driven by new product launches, relaunches, and market leadership of existing products. However, despite the revenue increase, net profit for the year declined by 1% to ₹772 crore due to lower other income and increased wage bills.

Dividend Details

The declared dividend will result in an outflow of ₹329 crore, translating to a payout ratio of 43%. Gland Pharma has set August 16 as the record date for the dividend payout, pending shareholder approval.

Market Performance

In the March quarter, Gland Pharma’s net profit fell short of market expectations. The company reported a net profit of ₹192 crore, compared to Bloomberg’s consensus estimate of ₹239 crore, despite revenue aligning with expectations.

Geographical Insights

The US remains a significant market for Gland Pharma, contributing over half of its revenue in FY24. Notably, revenue from Europe increased to 19%, up from 5% the previous year, following the company’s first international acquisition of Cenexi.

“This year marked a significant rebound for our base business, and we began an exciting new chapter as we completed our first international acquisition, Cenexi, in Europe,” said Srinivas Sadu, MD and CEO of Gland Pharma. He emphasized the company’s resilience in a dynamic business landscape and its strategic positioning for future growth.

Stock Performance

Gland Pharma made its stock market debut in November 2020 at an offer price of ₹1,500 per share. The stock surged by as much as 188% within nine months, reaching a high of ₹4,350. However, since then, it has corrected by 58%. On Wednesday, Gland Pharma shares closed at ₹1,793.05 on the NSE, down 0.44%.

Outlook

Despite the recent dip in quarterly profits, the company’s robust revenue growth and strategic acquisitions suggest a positive outlook. The maiden dividend declaration indicates confidence in long-term growth and stability.

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