Gland Pharma Announces First Ever Dividend Post Listing, Stock Up 5%

Gland Pharma announced its first dividend since IPO (₹20 per share). Revenue grew 56% to ₹5,665 crore in FY24, driven by product launches and market leadership. The company's strong performance in Q4 FY24 with a 145% net profit increase led to a 5% jump in stock price.

Gland Pharma on Wednesday, May 22, announced a dividend of ₹20 per share, its first dividend since it went public in 2020. Shares of the company were trading 5% up on ₹1882.15 on Thursday morning post result declaration.

Gland Pharma posted a 56% increase in revenue for FY24, reaching ₹5,665 crore. This growth was driven by new product launches, product relaunches, and market leadership maintained by existing products. However, the company's net profit for the fiscal year decreased by 1% to ₹772 crore, primarily due to lower other income and higher wage bills.

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

In FY24, the US market contributed more than half of Gland Pharma's revenue, with Europe’s share increasing to 19% from the previous year’s 5%. This growth in the European market is attributed to the company's first international acquisition, Cenexi.

Srinivas Sadu, MD and CEO of Gland Pharma said that the company has shown resilience in a dynamic business environment, positioning itself well for continued growth and success. “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,” he added.

Gland Pharma also reported a 145% rise in consolidated net profit for the January-March period of FY24, reaching ₹192.4 crore, compared to ₹78.7 crore in the same period last year.

Additionally, the company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) for the March quarter came in at ₹358.7 crore, up from ₹168.4 crore a year ago. The EBITDA margins improved to 23% in the March quarter, compared to 21% a year earlier.