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Glenmark Q1 net falls 54 %; below expectations

Glenmark Q1 net falls 54 %; below expectations
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First Published: Mon, Jul 27 2009. 10 19 PM IST
Updated: Mon, Jul 27 2009. 10 19 PM IST
Mumbai: Drugmaker Glenmark Pharmaceuticals Ltd reported an almost 50% fall in profits to Rs53.45 crore for the quarter ended 30 June, compared with Rs115.37 crore in the year-ago period, largely because of high interest costs and foreign exchange losses in Euro-dominated markets.
The loss is in spite of an 18% increase in sales. Consolidated revenue for the quarter rose to Rs543.68 crore against Rs460.82 crore a year ago.
Managing director and chief executive Glenn Saldanha said in a statement that the sales growth across regions for the quarter has been encouraging. “Even though the environment across markets remains subdued, we still managed to accelerate sales growth in the first quarter.” he said.
Analysts had predicted a not-so-impressive quarter for Glenmark as its interest burden and dependence on the competitive European markets could have make growth in profits difficult. Besides, it also did not have any additional income from its research and development business.
Saldanha said that the company would focus on launching new products in the branded generic market for the remaining part of the year, reducing costs and improving working capital across operating markets.
“On the drug discovery programme, topline results on (advanced clinical studies) are expected in the second quarter for our lead molecule oglemilast,” he said. Oglemilast is targeted at treating asthma.
Glenmark’s board on Monday approved a plan to raise up to $250 million through issue of equity shares or other securities.
The company’s shares fell Rs6.90 to Rs264.20, down 2.55%, at the BSE, on a day the bourse’s benchmark Sensex index ended flat at 15,375.04, down 3.92 points.
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First Published: Mon, Jul 27 2009. 10 19 PM IST