Glenmark Pharma Q2 profit grows 7% to Rs165.07 crore
Revenue for the quarter grew 14.85% to Rs1,680.70 crore from Rs1,463.38 crore a year-ago
Mumbai: Glenmark Pharmaceuticals Ltd on Thursday said net profit rose 7% to ₹ 165.07 crore for the quarter ended 30 September, compared with ₹ 154.29 crore in the year-ago period.
Revenue for the quarter grew 14.85% to ₹ 1,680.70 crore from ₹ 1,463.38 crore in the year-ago quarter, aided by increased sales in Latin American markets and India.
The growth in profit for Glenmark was much lower than Street expectations, as its US sales remained muted. Analysts had predicted over 30% growth in profit for the company during the quarter.
“Despite the challenging environment, we have performed well across geographies, viz. India, Europe and LatAm," said Glenn Saldanha, chairman and managing director of Glenmark.
But the environment continues to be tough, especially in the US where product approvals have slowed down considerably and the channel consolidation has impacted overall sales, he added.
“Glenmark results were below expectation primarily due to sequential increase in employee costs (one offs)," said Hitesh Mahida, a sector analyst with brokerage Antique Stock Broking Ltd.
Glenmark Generics Inc., the generic business arm of Glenmark in the US, had posted a drop in sales at ₹ 507.5 crore ($ 83.76 million) this quarter from ₹ 557.8 crore ($ 90.09 million) for the quarter a year ago. But its sales in Latin American markets more than doubled to ₹ 231 crore, while its sales in India and Europe grew about 15% and 25% respectively .
Shares of Glenmark fell 0.38% to close at ₹ 711.70 on BSE on Thursday, while India’s benchmark Sensex ended at 27,346.33, up 0.92% from previous close.
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