Glenmark eyes double-digit revenue growth in FY24, to focus on free cash generation, debt reduction

Glenmark Pharmaceuticals aims to grow its revenues by 10-11 per cent with a focus on free cash generation to reduce debt in the current financial year, according to Chairman and Managing Director Glenn Saldanha. The Mumbai-based drug major is also looking at enhancing EBITDA margins while expanding presence in various therapeutic segments like oncology and dermatology.
"For the new financial year, we aim to grow by 10-11 per cent in revenues, expand our EBITDA margin to 19-20 per cent, and continue to focus on enhancing free cash generation for further debt reduction," Saldanha said in the company's Annual Report for FY23.

In FY23, the company's consolidated revenue from operations stood at Rs 12,990 crore, up from Rs 12,305 crore in FY22. Besides, the drug maker reported an EBITDA of Rs 2,278 crore during the 2022-23 fiscal with margins at 17.5 per cent. Glenmark reported net debt of Rs 2,905 crore for the fiscal ended March 31, 2023.

Addressing the company's shareholders, he noted that the company will identify potential candidates for development purposes on a global scale as the drug maker moves up the value chain.
"Simultaneously, we are working towards enhancing our dermatology, oncology, and respiratory portfolios to establish a formidable presence in these core therapy areas through timely launches," Saldanha informed shareholders.

He noted that differentiated products will be at the forefront of the company's new launches in FY 24 to gain a competitive edge. "These will help us expand our presence in the branded/specialty/complex segments," Saldanha stated.

On plants facing regulatory issues, he stated: "Goa, Baddi, and Monroe (US) will continue their remediation efforts at the same momentum, and be inspection-ready this financial year." He further said: "We are mindful of the fact that as our scale of operations continues to increase, it becomes even more imperative to be quality-focused and compliant." Elaborating on its formulations business in North America, the company said it plans to file 10-12 abbreviated new drug applications (ANDAs) with the US Food and Drug Administration in the current fiscal.
In FY23, Glenmark was granted approval of 10 ANDAs by the US health regulator.