Home / Companies / Glenmark Q3 profit down 48% on forex loss, delays in US approval

Mumbai: Drug maker Glenmark Pharmaceuticals Ltd on Thursday posted a 48% drop in net profit in the December quarter, hurt by a delay in securing product approvals in US and currency devaluation in some of its key markets.

Net profit fell to 114.76 crore, against 214.3 crore a year ago. Sales at 1,701 crore grew 6%, below market expectations.

“The slowdown in product approvals and channel consolidation impacted our sales in the US, whereas the devaluation of currency and subdued business environment affected our Russia and CIS business. While, our India, Latin America and Europe businesses performed well in the quarter" chairman and managing director Glenn Saldanha said in a Thursday statement.

Glenmark results were lower on sales, but higher in terms of the adjusted operational profit considering the Russian forex loss of 1,060 million, said Hitesh Mahida, pharma stock analyst at Antique Stock Broking Ltd.

“Its sales at 17 billion was led by growth in Latin America, which doubled compared to the year-ago quarter, and a 200% growth in Venezuela and Mexico," Mahida said.

Glenmark shares lost 0.5% to close at 743.70 on Thursday on the BSE, while the benchmark Sensex gained 0.95% to 28,805.10 points.

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