Glenmark Pharma Q3 Results: Profit Rises 23%, Beats Estimates
The drugmaker's net profit rose 23% YoY to Rs 273 crore, while revenue increased 9% to Rs 3,464 crore.
Glenmark Pharmaceuticals Ltd.'s net profit rose in the third quarter, beating estimates.
The Mumbai-based bulk and generic drugmaker's net profit rose 23% year-on-year to Rs 273 crore in the quarter ended December. That compares with the Rs 251 crore consensus estimate of analysts tracked by Bloomberg.
The after-tax profit includes the impact of certain exceptional items. The company had a one-time gain of Rs 34 crore in Q3, which is net gain from sale of its cardiac brand—Razel's India—and Nepal business, against the remediation cost of the company's Monroe manufacturing site in the U.S.
In the same quarter of the previous fiscal, the company had an exceptional write-off towards impairment of certain intangible assets.
Sequentially, the after-tax profit of the company rose by 5%.
Glenmark Pharma Q3 Highlights (YoY)
Revenue rose 9% to Rs 3,464 crore, against an estimate of Rs 3,295 crore.
Ebitda declined 11% to Rs 620 crore, as compared to the forecast of Rs 574 crore.
Margin stood at 17.9% against 21.8%. Analysts had projected it at 17.4%.
"We had yet another quarter with a strong performance led by robust growth across all our markets, despite the challenging macroeconomic conditions," Glenn Saldanha, chairperson and managing director at Glenmark Pharmaceuticals, said in the exchange filing.
Its India business continued to record a healthy increase in secondary sales, the U.S. business recovered as the year progressed, and the E.U. and the rest-of-the-world businesses also reflected formidable growth during the quarter, he said.
"Our global respiratory portfolio gained momentum, with the impressive performance of our novel drug Ryaltris® (nasal spray) across all markets where it was launched."
Other Highlights (YoY)
India contributed to 31% of the total revenue for the quarter, registering a growth of around 7%.
As per IQVIA MAT December 2022, Glenmark’s India formulation business is ranked 14th.
U.S. formulation business rose 11%; it contributes 24% of total sales.
Revenue from Europe grew by 30%, while rest-of-the-world revenue rose 22%, accounting for around 14% and 19% of the quarterly revenue, respectively.
External sales of active pharmaceutical ingredients, which are done through its subsidiary Glenmark Life Sciences Ltd., rose 14%.
Shares of Glenmark Pharma closed 1.43% higher ahead of the results announcement on Friday, compared to a 0.2% decline in the benchmark Sensex.