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Glenmark Pharma gains after Q2 PAT rises 10% YoY to Rs 257 crore

Glenmark Pharmaceuticals gained 1.41% to Rs 531.05 after the drug company posted a 10.1% increase in consolidated net profit to Rs 257.66 crore on a 7.5% rise in net sales to Rs 3,125.43 crore in Q2 FY22 over Q2 FY21.

November 15, 2021 11:39 IST | capital market
Profit before tax rose 13.4% to Rs 385 crore in Q2 FY22 over Q2 FY21. Consolidated EBITDA grew by 6.8% to Rs 590.2 crore in Q2 FY22 from Rs 552.8 crore reported in Q2 FY21. EBITDA margin slightly improved to 18.8% in Q2 FY22 from 18.7% in Q2 FY21.

Sales from the formulation business in India in Q2 FY22 was at Rs 968.9 crore as against Rs 1050.7 crore in the previous corresponding quarter, recording de‐growth of 7.8%. As per July‐Sep 21 IQVIA data, while the growth has been impacted by lower contribution from COVID related products as compared to last year, the non-COVID base portfolio grew 16.7% as compared to the non-COVID IPM growth of 15.3% during the quarter. Glenmark said that the India business continues to outperform the industry growth and has grown consistently over the past several years.

North America registered revenue from the sale of finished dosage formulations of Rs 754.3 crore (approx. $ 102 million) for the quarter ended 30 September 2021 as against revenue of Rs 752.2 crore ($ 101 million) for the previous corresponding quarter, recording growth of 0.3%. The company currently has 47 applications pending in various stages of the approval process with the US FDA.

Glenmark Europes operations revenue for Q2 FY22 was at Rs 338.3 crore ($ 46 million) as against Rs 318.1 crore ($ 43 million) recording growth of 6.3%. The company witnessed a mixed performance in the Western European region. While growth was affected by continued COVID restrictions in some countries, key markets like UK and Netherlands witnessed positive growth.

Glenmarks revenue from its Latin American & Caribbean operations was at Rs 96 crore ($ 13 million) for Q2 FY22 as against Rs 98.4 crore, recording revenue decline of 2.4%. Revenue growth was impacted by Brazil where the market remained challenging due to the pandemic. However, the company said it is beginning to witness recovery in this region with most of the other markets recording positive growth momentum during the quarter including Mexico which grew 27% year on year.

For Q2 FY22, revenue from Rest of the World (RoW) was Rs 652.6 crore ($ 88 million) as against Rs 380.6 crore ($ 51 million) for the previous corresponding quarter, recording growth of 71.5%. The company said it witnessed healthy growth in the region, aided by strong traction in the COVID portfolio and also growth in the base business

Research & Development expenses declined 9.9% year on year to Rs 329 crore in Q2 FY22 from Rs 365 crore spent in Q2 FY21. R&D percentage of sales came at 10.5% in Q2 FY22 from 12.4% in Q2 FY21.

Glenn Saldanha, chairman & MD of Glenmark Pharmaceuticals said, ?We delivered another quarter of consistent performance, both in revenue growth and profitability. We continue to perform well in our core therapy areas and launched differentiated products. We have substantially reduced our debt through a combination of internal accruals and IPO proceeds. We are focused on enhancing free cash generation and achieving our strategic objectives going forward.?

Glenmark reiterated revenue growth of 10‐15% during the year. The company aims to sustain EBITDA margin performance at similar levels of FY21. Post FY22, Glenmark will focus on enhancing free cash generation for further debt reduction, prioritizing over R&D investments and capital expenditure.

Glenmark Pharmaceuticals is a global research-led pharmaceutical company with presence across generics, specialty and over-the-counter (OTC) business with operations in over 50 countries.

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