Glenmark Pharma

Sales rose 26.45%

Aug 14, 2021 07:08 IST capital market

For the quarter ending June 2021, Net sales (including other operating income) of Glenmark Pharmaceuticals has increased 26.45% to Rs 2964.9 crore compared to quarter ending june 2020. 

Operating profit margin has fell from 20.39% to 19.35%, leading to 19.98% rise in operating profit to Rs 573.58 crore.  Raw material cost as a % of total sales (net of stock adjustments) decreased from 31.13% to 29.96%.   Purchase of finished goods cost rose from 0.96% to 10.41%.   Employee cost decreased from 22.53% to 19.48%.   Other expenses fell from 24.26% to 21.42%.   

Other income rose 0.24% to Rs 58.65 crore.  PBIDT rose 17.83% to Rs 632.23 crore.  Provision for interest fell 19.35% to Rs 75.6 crore.  

PBDT rose 25.70% to Rs 556.63 crore.  Provision for depreciation fell 0.13% to Rs 113.07 crore.  

Profit before tax grew 34.57% to Rs 443.56 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 137.03 crore, compared to Rs 103.57 crore.  Effective tax rate was 30.89% compared to 28.96%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 20.66% to Rs 306.53 crore.  

Promoters stake was 46.63% as of 30 June 2021 ,compared to 46.62% as of 30 June 2020 .  

Full year results analysis.

Net sales (including other operating income) of Glenmark Pharmaceuticals has increased 2.85% to Rs 10943.93 crore.  

Operating profit margin has jumped from 15.96% to 19.05%, leading to 22.75% rise in operating profit to Rs 2,084.37 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 24.17% to 28.18%.   Purchase of finished goods cost fell from 9.79% to 6.74%.   Employee cost decreased from 21.45% to 21.05%.   Other expenses fell from 28.44% to 25.30%.   

Other income fell 68.53% to Rs 50.22 crore.  PBIDT rose 14.91% to Rs 2134.59 crore.  Provision for interest fell 6.42% to Rs 353.11 crore.  Loan funds declined from Rs 4,485.59 crore as of 31 March 2020 to Rs 4,401.83 crore as of 31 March 2021.  Inventories rose to Rs 2,276.83 crore as of 31 March 2021 from Rs 2,135.62 crore as of 31 March 2020.  Sundry debtors were higher at Rs 2,572.06 crore as of 31 March 2021 compared to Rs 2,408.96 crore as of 31 March 2020.  Cash and bank balance rose to Rs 1,139.16 crore as of 31 March 2021 from Rs 1,111.24 crore as of 31 March 2020.  Investments rose to Rs 24.63 crore as of 31 March 2021 from Rs 24.59 crore as of 31 March 2020 .  

PBDT rose 20.34% to Rs 1781.48 crore.  Provision for depreciation rose 6.32% to Rs 443.55 crore.  Fixed assets declined from Rs 6,197.54 crore as of 31 March 2020 to Rs 4,175.57 crore as of 31 March 2021.  Intangible assets increased from Rs 52.90 crore to Rs 2,334.95 crore.  

Profit before tax grew 25.84% to Rs 1,337.93 crore.  Share of profit/loss were nil in both the periods.  Extraordinary items were increased to Rs 44.55 crore.  Provision for tax was expense of Rs 412.39 crore, compared to Rs 320.11 crore.  Effective tax rate was 29.83% compared to 29.20%.

Minority interest was nil in both the periods.  Net profit attributable to owners of the company increased 25.02% to Rs 970.09 crore.  

Equity capital stood at Rs 28.22 crore as of 31 March 2021 to Rs 28.22 crore as of 31 March 2020.  Per share face Value remained same at Rs 1.00.  

Promoters stake was 46.63% as of 31 March 2021 ,compared to 46.62% as of 31 March 2020 .  

Cash flow from operating activities decreased to Rs 1,131.21 crore for year ended March 2021 from Rs 1,392.41 crore for year ended March 2020.  Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 774.76 crore, compared to Rs 931.37 crore during the year ended March 2020.  

Other Highlights

In Q1 FY22, India Business grew by 57 %, North America Business recorded growth of 6%, Europe Business grew by 12%, ROW Business grew by 27% and API Business grew by 29% on YoY basis.

In Q1 FY22, Secondary sales of Glenmarks Consumer Care business grew by 24% on YoY basis.

Glenmarks India business further strengthened its position in its core therapy area in respiratory with market share increasing to 5.25% as compared to 5.16% in Q1 last year.

Management commentary: Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals said It was a landmark quarter for the company with positive momentum in all our key markets. Our commitment towards the fight against COVID19 was reflected in FabiFlu? becoming the number one brand in the India pharma market in April. We launched our first nebulizer, Arformoterol Inhalation solution from Monroe, US.

We have a strategic roadmap to grow consistently and profitably over the year. We have a clear plan in place to reduce debt by enhancing free cash, prioritizing over R&D investments and capital expenditure going forward.

Glenmark Pharmaceuticals: Consolidated Results

 

Quarter ended Year ended
Particulars 202106 202006 Var.(%) 202103 202003 Var.(%)
Net Sales (including other operating income) 2,964.90 2,344.78 26.45 10,943.93 10,640.97 2.85
OPM (%) 19.35 20.39 -104 bps 19.05 15.96 309 bps
OP 573.58 478.07 19.98 2,084.37 1,698.09 22.75
Other Inc. 58.65 58.51 0.24 50.22 159.6 -68.53
PBIDT 632.23 536.58 17.83 2,134.59 1,857.69 14.91
Interest 75.6 93.74 -19.35 353.11 377.32 -6.42
PBDT 556.63 442.84 25.7 1,781.48 1,480.37 20.34
Depreciation 113.07 113.22 -0.13 443.55 417.17 6.32
PBT 443.56 329.62 34.57 1337.93 1063.2 25.84
Share of Profit/(Loss) from Associates 0 0 - 0 0 -
PBT before EO 443.56 329.62 34.57 1337.93 1063.2 25.84
EO Income 0 27.99 - 44.55 32.88 35.49
PBT after EO 443.56 357.61 24.03 1382.48 1096.08 26.13
Taxation 137.03 103.57 32.31 412.39 320.11 28.83
PAT 306.53 254.04 20.66 970.09 775.97 25.02
Minority Interest (MI) 0 0 - 0 0 -
Net profit 306.53 254.04 20.66 970.09 775.97 25.02
P/(L) from discontinued operations net of tax 0 0 - 0 0 -
Net profit after discontinued operations 306.53 254.04 20.66 970.09 775.97 25.02
EPS (Rs)* 10.86 8.3 30.91 33.27 26.68 24.73
Notes
* EPS is on current equity of Rs 28.22 crore, Face value of Rs 1, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
EO : Extraordinary items
Figures in Rs crore
Source: Capitaline Corporate Database

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