Glenmark Pharmaceuticals Ltd. reported flat profit in the second quarter, but it beat estimates.
The Mumbai-based bulk and generic drugmaker's net profit rose 1% year-on-year to Rs 260 crore in the quarter ended September. That compares with the Rs 212-crore consensus estimate of analysts tracked by Bloomberg.
Glenmark Pharma Q2 Highlights (YoY)
Revenue rose 7% to Rs 3,375 crore against an estimate of Rs 3,060 crore.
Ebitda was up 5% at Rs 622 crore, against the forecast of Rs 541 crore.
The margin stood at 18.4% against 18.8%. Analysts had projected it at 17.7%.
According to Glenn Saldanha, chairman and managing director at Glenmark Pharmaceuticals, their novel drug Ryaltris, launched in the U.S. by their partner Hikma and their Canadian partner Bausch Health, received marketing approval from Health Canada, with an expected launch during the second half of the financial year.
"Our India business recorded strong double‐digit growth and our Europe business also performed well in spite of a challenging macroeconomic environment," he said, in the exchange filing.
The company is looking to launch new products across markets and build global scale in their respiratory portfolio, Saldanha said.
Other Highlights (YoY)
India contributed to 32% of the total revenue for the quarter, registering a growth of around 13% on account of a high base of Covid-related product sales.
As per IQVIA MAT September 2022, Glenmark's India formulation business is ranked 14th. It launched nine new products during the quarter in India.
U.S. formulation business contracted 0.1%. It contributes 22% of total sales.
Revenue from Europe grew by 12%, while that from the rest of the world declined by 18%, accounting for around 11% and 18%, respectively, of the quarterly revenue.
External sales of active pharmaceutical ingredients that are done through its subsidiary, Glenmark Life Sciences, rose by 12%.
Shares of Glenmark Pharma closed 0.28% lower ahead of the results announcement, compared with a 1.95% rise in the benchmark S&P BSE Sensex.
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