Glenmark Pharmaceuticals Ltd's Q1FY19 consolidated net profit declines 30.11% yoy to Rs232.99cr: Misses Estimates

The company’s consolidated revenue stood at Rs2,165.62cr, down 8.35% yoy and 5.01% qoq.

Aug 12, 2018 02:08 IST India Infoline Research Team

Glenmark Pharmaceuticals Ltd Q1FY19

Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 2,165.62 [8.4]
EBITDA 346.88 [39.9]
EBITDA Margin (%) 16 [842]
Net Profit (adjusted) 232.99 [30.1]
***EBITDA margin change is bps

Glenmark’s revenue in Q1FY19 declined by 8.4% yoy to Rs2,165.6cr. EBITDA declined by 39.9% yoy to Rs346.9cr in Q1FY19 vs. Rs577.4cr in Q1FY18. EBITDA margins declined 842bps yoy to 16% in Q1FY19 vs. 24.4% in Q1FY18. PAT declined 30% yoy to Rs233cr in Q1FY19 vs. Rs333.4cr inQ1FY18.
  • Gross margins declined by 451bps yoy to 65% in Q1FY19.
  • Revenue from the domestic business grew 7.6% yoy to Rs 663.3cr in Q1FY19. Its market share stood at 2.6% during Q1FY19.
  • Glenmark’s consumer care business grew 25% yoy growth in Q1FY19.
  • Glenmark will transfer its orthopaedic and pain management business in India and Nepal market to True North within the next couple of months. This business had revenues of Rs156cr in FY18 and has products such as Esoz, Bon K2, Collasmart, and Lizolid.
  • US formulations saw a decline of 33% yoy as Glanmark’s partner’s 108-day exclusivity in gZetia ended.
  • Revenue in the ROW region grew 8.4% yoy to Rs245.4cr in Q1FY19.
  • The revenue in Europe increased 35.6% yoy to Rs219.8cr, due to multiple new product launches across all key markets.
  • Revenue from Latin American and Caribbean operations grew 15.5% yoy to Rs97.6cr in Q1FY19, while the API business saw 2.6% yoy growth to Rs210cr in Q1FY19.
  • Company has filed Ryaltris, an investigational fixed-dose combination nasal spray, with the US FDA for review.

Technical View:

Glenmark Pharmaceuticals Ltd ended at Rs. 588, down by 7.15 points or 1.2% from its previous closing of Rs. 595.15 on the BSE.
The scrip opened at Rs. 597.95 and touched a high and low of Rs. 598.20 and Rs. 585.90 respectively. A total of 5,14,682 (NSE+BSE) shares were traded on the counter. The stock traded below its 50 DMA.

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