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Glenmark Pharmaceuticals Q1 Results: Profit Falls 31%, But Beats Estimates

Glenmark's Q1 profit declined 31%, but beats estimates, to Rs 211 crore versus Rs 182-crore consensus estimate of analysts.

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

Glenmark Pharmaceuticals Ltd.’s first-quarter profit declined, but beats estimates.

The Mumbai-based bulk and generic drugmaker’s net profit declined 31% year-on-year to Rs 211 crore in the quarter ended June, according to its exchange filing. That compares with the Rs 182-crore consensus estimate of analysts tracked by Bloomberg.

Glenmark Pharma Q1 Highlights (YoY)

  • Revenue fell 6% to Rs 2,777 crore against an estimate of Rs 2,866 crore

  • Ebitda was down 25% at Rs 432 crore against the Rs 475-crore forecast.

  • Margin stood at 15.5% against 19.3%. That compares to the forecast of 16.6%.

Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals said in the exchange filing that the company delivered a strong double digit growth in their base business during the quarter excluding the impact of Covid-related products.

"Our goal is to continue growing our base business through new product launches in our key focus areas of respiratory, dermatology, and oncology."

Other Highlights (YoY)

  • India contributed to 37% of the total revenue for the quarter, registering a de-growth of around 16% on account of a high base of Covid-related product sales. The consumer care business rose 94% driven by strong performance in the core brands such as Candid Powder, La Shield, and Scalpe.

  • As per IQVIA MAT June 2022, Glenmark’s India formulation business is ranked 14th. It launched seven new products during the quarter in India.

  • U.S. formulation business contracted 10%. It contributes to 24% of total sales.

  • Revenue from Europe grew 8%, while from rest of world it rose 26% accounting for around 12% and 15%, respectively, of the quarterly revenue. These markets performed well "despite the challenging macro-economic environment" according to Saldanha in the filing.

  • External sales of active pharmaceutical ingredients that are done through its subsidiary, Glenmark Life Sciences, rose 7%.

  • The company has invested Rs 168 crore in Ichnos Sciences, its wholly-owned US based innovation subsidiary, in the first quarter.

Shares of Glenmark Pharma closed 1.02% higher ahead of the earnings, compared with an almost unchanged benchmark S&P BSE Sensex.