BENGALURU (Reuters) – Glenmark Pharmaceuticals reported a more than two-fold growth in first-quarter profit on Wednesday, helped by strong demand for its drugs and a marginal decrease in costs.
The drugmaker reported consolidated profit before exceptional items and taxes of 4.62 billion rupees ($55 million) for the quarter ended June 30, from 2.03 billion rupees a year ago.
The company had a one-time charge of 520.2 million rupees in the year-ago period for repairs at its manufacturing facilities in India and the United States.
Revenue from operations rose 8% to 32.44 billion rupees, while expenses declined 1.4%.
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KEY CONTEXT
Indian drugmakers are benefitting from strong domestic demand for chronic and specialty drugs. Last month, Mankind Pharma reported a 10% jump in profit, although it missed estimates due to higher costs.
However, Glenmark Pharma’s profits have been pressured by legal costs and expenses related to remediation of its manufacturing facilities in India and the U.S., although it did not provide specific details about the remediation.
The company had also previously flagged an impact to domestic revenue due to changes in its distribution channel after selling its stake in Glenmark Life Sciences.
Glenmark Pharma, which makes anti-infective and respiratory therapeutics, said it aims to mitigate this impact in the current fiscal year through new product launches.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBI Revenue Profit Mean # of Stock to Div
TDA growth growth rating* analysts price yield
(%) (%) target** (%)
Glenmark 29.24 15.72 14.46 4750.49 Buy 11 1.28 0.17
Pharmaceuticals
Mankind Pharma 37.92 26.44 13.66 14.62 Buy 14 0.96 NULL
Torrent 50.98 28.12 12.40 25.92 Buy 27 1.05 0.84
Pharmaceuticals
Sun 35.43 26.15 10.27 13.41 Buy 31 1.01 0.78
Pharmaceutical
Industries
* Mean of analysts’ ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** Ratio of the stock’s last close to analysts’ mean price target; a ratio above 1 means the stock is trading above the PT
APRIL-JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 83.9210 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Varun H K)
