BENGALURU (Reuters) – Indian generic injectables maker Gland Pharma Ltd reported a lower-than-expected third-quarter profit on Monday, hurt by soft demand in its key markets and supply chain disruptions that led to production delays.
The Hyderabad-based company said its consolidated net profit fell 15% to 2.32 billion rupees ($28.50 million) for the quarter ended Dec. 31.
Analysts, on average, had expected the company to post a profit of 2.76 billion rupees.
Its margin on earnings before interest, taxes, depreciation, and amortisation slipped to 35% from 36% a year ago.
“Ongoing supply chain disruptions leading to production delays continue to impact our performance,” Chief Executive Officer Srinivas Sadu said in a statement.
“There was an impact due to inventory at customers’ end for certain products,” the company said.
Revenue from operations fell 11.8% to 9.38 billion rupees, dragged by weak sales in international and domestic markets.
Core markets for the company include the United States, Europe, Canada, Australia, and New Zealand, which accounted for 70% of revenue during the third quarter.
The company’s shares closed 0.79% lower on Monday at 1,375.65 rupees ahead of the results.
The stock fell 59.2% in 2022, while the Nifty pharma index was down 11.43%.
($1 = 81.3990 Indian rupees)
(Reporting by Manvi Pant in Bengaluru; Editing by Sohini Goswami and Janane Venkatraman)
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