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.
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.