Glenmark Q3 FY17 net rises by 143%

 
Mumbai-based generic drug maker Glenmark Pharmaceuticals Ltd reported a robust 143 percent year-on-year growth in consolidated net profit for the quarter ended December 31, 2016, to Rs 477 crore on the back of strong operating performance in the US market.

The company reported a 42.5 percent increase in turnover during the period to Rs 2,535 crore and its consolidated Ebitda (earnings before interest, tax, depreciation and amortisation) in the October-December period rose by 106 percent year-on-year to Rs 765 crore.

“The overall growth for the organisation has been bolstered due to the strong performance by our US formulation business. It was further aided by the good performance from our API (active pharma ingredients) business too,” said Glenn Saldanha, chairman and managing director of Glenmark Pharmaceuticals.  “In India, considering the overall demand environment, the business still managed to record sales.”

In the US market, which is the largest market for Indian generic drug manufacturers, Glenmark recorded sales of Rs 1,230 crore, up by 102 percent over the corresponding period of fiscal 2015-16. Sales in India grew by nearly six percent to Rs 517 crore and 6.25 percent to Rs 251 crore in the Africa, Asia and CIS region.

According to a first-cut research note by ICICI Direct, Glenmark’s reported earnings were above estimates on all fronts. “Ebitda margins increased by 934 basis points year-on-year to 30.2 percent mainly due to higher gross margin attributable to exclusivity of gZetia (generic version of Zetia – a cardiovascular drug) in the US,” the ICICI Direct note said.