Glenmark Life Q1 PAT rises 25% YoY to Rs 101 cr

The pharma company's net profit increased 24.5% to Rs 100.91 crore on 32.2% rise in revenue from operations to Rs 524.90 crore in Q1 FY22 over Q1 FY21.

The company's revenue from the Generic API segment increased 38.3% year on year to Rs 480.34 crore during the quarter driven by growth across all geographies. The regulated markets accounted for 66.5% of net sales, growing at 30.5% year on year.

EBITDA stood at Rs 164.44 crore for the first quarter growing at 17.9% year on year. EBITDA margin for the quarter declined to 31.3% in Q1 FY22 as against 35.1% in Q1 FY21.

Commenting on the company's Q1 FY22 performance, Dr. Yasir Rawjee, MD & CEO of Glenmark Life Sciences said, "Today we have embarked on a good start in Q1 FY22, with the business delivering a strong growth. Our generic API business has delivered robust growth across all geographies. Increased demand in both regulated and emerging markets have fuelled this growth. However, the CDMO business, being cyclical, was affected due to phasing of customer orders this quarter and we expect it to pick up pace again from Q2 FY22. I am confident that our continued focus on continuous process innovation, operational efficiency and financial discipline will help us deliver sustainable business growth. We are also future ready to cater to the growing demand through a brownfield expansion in our Dahej facility and a modern green-field manufacturing facility. We will continue to deliver on quality, safety and environmental compliance which form the bedrock for our company."

The company's gross debt comprising of outstanding purchase consideration payable to the parent company was Rs 800.83 crore as on 9 July 2021. The company said it has repaid the whole of this outstanding amount pursuant to funds raised through the IPO.

Bhavesh Pujara, CFO of Glenmark Life Sciences said, We started off the financial year 2022 on a strong note with our revenues growing at 32.2% YoY in the first quarter. Despite a tough operating environment due to 2nd wave of COVID19, we have been able to post healthy growth across all markets. Our continuous focus on cost reduction projects and cost controls have helped us overcome some of the headwinds on raw material prices and we closed the quarter with a healthy EBITDA margin of 31.3%. Also in accordance with the objects of the IPO, we have repaid all of the outstanding debt owed to our parent and have now become a debt free company."

The company filed 9 DMF/CEPs across major markets (i.e. United States, Europe, Japan, Russia, Brazil, South Korea, Taiwan, Canada, China and Australia) during Q1 FY22 and cumulative filing stands at 407 as on 30th June 2021.

Glenmark Life Sciences, a subsidiary of Glenmark Pharmaceuticals, is a developer and manufacturer of select high-value, non-commoditised active pharmaceutical ingredients (APIs) in chronic therapeutic areas, including cardiovascular disease, central nervous system disease, pain management, and diabetes.

Shares of Glenmark Life Sciences entered the bourses on 6 August 2021. The stock listed at price of Rs 751.10 per share, representing 4.32% premium to the issue price of Rs 720 per share. The initial public offer of the company received bids for 66.33 crore shares as against 1.50 crore shares on offer, according to stock exchange data. The issue was subscribed 44.17 times. The issue opened for bidding on 27 July 2021 and closed on 29 July 2021. The price band of the IPO was fixed at Rs 695-720 per share.

Shares of Glenmark Life Sciences were currently down 0.25% at Rs 750.05 on BSE.

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