Mumbai: Glenmark Pharmaceuticals Ltd on Thursday reported a 4.2% year-on-year drop in September quarter consolidated net profit to Rs214.12 crore on weak US sales, still exceeding market expectations.

Net sales grew 2.3% to Rs2,223.44 crore during the quarter from Rs2,173.18 crore a year earlier as higher sales in Europe and India more than offset a decline in US revenue.

A Bloomberg poll of 12 analysts estimated Glenmark’s consolidated net profit at Rs191.2 crore, and a poll of 19 analysts pegged sales at Rs2,313.2 crore for the September quarter.

“The overall performance was driven by our India, Europe and API (active pharmaceutical ingredients) business. Despite several challenges in the market, India business recorded high single digit growth. The Europe business performed very well during the quarter due to a strong performance by the Western European region," Glenn Saldanha, chairman and managing director of Glenmark said in a press release.

In US, the biggest market for the company, sales fell 5.7% on year to $113.24 million because of the persisting price erosion in older products.

Formulations sales in domestic market rose 5.3% to Rs710.68 crore, while sales in Europe surged 48.5% to Rs200.02 crore. Total sales of APIs rose 6.9% to Rs236.61 crore during the quarter.

Consolidated earnings before interest, tax, depreciation and amortization (ebitda) dropped 6.4% to Rs418.12 crore in the quarter.

The company detailed its financial results post stock market trading hours.

Shares of Glenmark ended up 4.4% at Rs648.55 on the BSE on Thursday, while the benchmark Sensex index closed down 0.1% at 33,573.22 points.

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