Glenmark Pharma Q4 Results: Reports Loss On One-Off Expense; Revenue In Line With Estimates

Glenmark Pharma faced a litigation settlement in the U.S., which led to the exceptional loss.

<div class="paragraphs"><p>Source: Unsplash</p></div>
Source: Unsplash

Glenmark Pharmaceuticals Ltd.'s reported an after-tax loss in the fourth quarter of fiscal 2023, though its revenue and margin were in line with estimates.

The Mumbai-based bulk and generic drugmaker's reported a net loss of Rs 428 crore in the quarter ended March as against a net profit of Rs 156 crore last year. That compares with the Rs 276 crore consensus estimate of analysts tracked by Bloomberg.

It faced a litigation settlement related to the generic cholesterol drug Zetia in the U.S., which led to the exceptional loss.

Glenmark Pharma Q4 Highlights (YoY)

  • Revenue rose 12% to Rs 3,374 crore, as against an estimate of Rs 3,331 crore.

  • Ebitda rose 31% to Rs 605 crore, as compared with a forecast of Rs 604 crore.

  • Margin stood at 17.9% against 15.3%. Analysts had projected it at 18.1%.

The board has recommended a dividend of Rs 2.50 per share.

"We delivered yet another year of robust performance, despite the challenging global macroeconomic environment," Glenn Saldanha, chairperson and managing director at Glenmark Pharmaceuticals, said in the exchange filing.

The company continued to make headway in launching Ryaltris, their first global branded specialty product, he said. Additionally, it initiated the Proof-of-Concept studies for four of their clinical oncology assets, which are part of the Glenmark/Ichnos pipeline.

"We look forward to continue this momentum in the coming year with double-digit revenue growth and significant improvement in Ebitda margin," Saldanha said.

Other Highlights (YoY)

  • India registered a decline in growth of around 6% in sales at Rs 828 crore.

  • "This decline was mainly on account of the impact of the divestment of few non-core brands, some impact of the National List of Essential Medicines price revisions, as well as returns of Covid-related products, the company said in the filing.

  • U.S. formulation business rose 15% to Rs 851 crore.

  • Revenue from Europe grew by 22%, while rest-of-the-world revenue rose 25%.

Shares of Glenmark Pharma closed 3.5% higher ahead of the results announcement on Friday, as compared with a 0.48% rise in the benchmark Sensex.