Glenmark’s Q2 profit grows at 3.5% despite 16% rise in revenue
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In spite of a 16% year-on-year rise in revenue, Glenmark Pharmaceuticals Ltd’s profit growth was capped at 3.5% in the quarter ended 30 September because of an increase in expenses and interest costs.
Net profit rose to Rs223.6 crore for the three months ended 30 September from Rs216.1 crore a year ago. Net sales rose to Rs2,173.2 crore from Rs1,878.7 crore.
Glenmark’s total expenditure rose 18% to Rs1,844 crore in the September quarter, while finance costs jumped 47% to Rs62.9 crore. Operating margin narrowed to 20.18% from 21.15% a year ago.
“The US, India, ROW (rest of the world markets) and the API (active pharmaceutical ingredients) business have done well. The strong growth witnessed by the US business is on account of a number of product approvals received by the organization over the last 18 months,” chairman and managing director Glenn Saldanha was cited as saying in the company’s earnings press release. Sales of formulations in the US surged 29% to Rs771.2 crore, while sales in domestic market rose 11% to Rs674.9 crore.
Glenmark received marketing approval for six products in the US during the September quarter.
The company intends to file seven abbreviated new drug applications (ANDA) with the US Food and Drug Administration (USFDA) in the December quarter.
So far in the current financial year, it has filed six ANDAs with the US drug regulator.