BackGlenmark Pharmaceuticals gains 7% on strong June quarter performance
Glenmark Pharmaceuticals had reported an over two-fold increase in consolidated net profit at ₹254.04 crore for the quarter ended June
PremiumMUMBAI : Glenmark Pharmaceuticals jumped as much as 6.96% on Monday after the company's consolidated net profit more than doubled to ₹254.04 crore in Q1 June 2020 from ₹109.28 crore in Q1 June 2019.
At 12:56 pm, Glenmark Pharmaceuticals was trading at ₹486 up 2.23% from its previous close, while the benchmark index, Sensex gained 0.16% to 37,937.56.
The company's consolidated revenue increased by 0.94% to ₹2,344.78 crore in the June quarter from ₹2,322.87 crore in the same quarter of last fiscal. Earnings before interest tax depreciation and ammortisation (EBITDA) stood at ₹478.06 crore in the quarter ended 30 June 2020 as against ₹341.91 crore in the previous corresponding quarter, registering an increase of 39.82%.
Analysts at Motilal Oswal in a result note said "Glenmark’s revenues growth was driven by Europe and India formulations, net profit grew at a higher rate of 72% YoY to ₹230 crore due to better margins and lower tax rate, the company received approval for 2 products and filed 3 Abbreviated New Drug Application(ANDA) with the USFDA. It plans to file 3 ANDA applications in the coming quarter". The brokerage has a neutral rating on the stock.
Europe Business grew by 12.77% year-on-year to ₹273.87 crore while US Business grew by 1.61% y-o-y to ₹742.64 crore and the Active Pharmaceutical Ingredient(API) Business grew by 1.83% y-o-y to ₹234.83 crore during the quarter.
The company was the first in the country to launch Favipiravir for the treatment of mild to moderate covid-19, it said.
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