Glenmark Pharmaceuticals Ltd. swung back to profit in the second quarter of the current financial year, according to an exchange filing on Thursday.
The drugmaker posted a consolidated net profit of Rs 354.5 crore in the quarter ended September, meeting the consensus estimate of Rs 352 crore by analysts tracked by Bloomberg. It had reported a loss of Rs 61.6 crore in the year-ago period.
Glenmark Q2 FY25 Earnings Highlights (Consolidated, YoY)
Revenue up 7.1% to Rs 3,433.8 crore versus Rs 3,207.4 crore (Bloomberg estimate: Rs 3,492 crore).
Ebitda up 30% to Rs 601.9 crore versus Rs 462.3 crore (Estimate: Rs 654 crore).
Margin expands 310 basis points to 17.5% versus 14.4% (Estimate: 18.7%).
Net profit at Rs 354.5 crore versus loss of Rs 61.6 crore (Estimate: Rs 352 crore).
The cost of materials consumed accounted for 31% of the sales, down from 37.3% in the year-ago quarter, leading to a growth in the Ebitda margin. The net profit surged due to higher other income, lower finance cost and lower tax.
In the second quarter of the last fiscal, Glenmark Pharma had posted an exceptional loss of Rs 325 crore, which comprises the cost related to the settlement with the US Department of Justice's antitrust division, and remediation cost of manufacturing sites in India and the US.
Sales from the formulation business in India grew 14% to Rs 1,281.7 crore. North America registered a 1.2% decline in revenue from the sales of finished dosage formulations at Rs 740.5 crore.
Revenue from the rest of the world fell 4.1% to Rs 704.1 crore. The Europe operations posted a 15% growth in revenue at Rs 687.4 crore.
Shares of Glenmark Pharma closed 0.37% lower at Rs 1,533.70 apiece on the NSE ahead of the earnings announcement, compared to a 0.11% decline in the benchmark Nifty 50.
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