Glenmark Pharma Q3 profit spurts 64% to Rs 191 cr; firm to raise $400 mln

The drug maker's consolidated net profit surged 64% to Rs 190.74 crore in Q3 December 2019 (Q3 FY20) as against Rs 116.33 crore reported in Q3 December 2018 (Q3 FY19).

Net sales rose 5.1% year-on-year (Y-o-Y) to Rs 2,638.62 crore in Q3 FY20. Profit before tax (PBT) soared 75.9% to Rs 270.98 crore Y-o-Y. Current tax expenses jumped 77.4% to Rs 111.75 crore during the period under review. EBITDA climbed 1.2% to Rs 440.07 crore during Q3 FY20 as against Rs 434.68 crore in Q3 FY19. The result was announced after market hours on Friday, 14 February 2020.

During the period under review, India business grew by 18.17% to Rs 788.83 crore; US business declined 6.53% to Rs 799.82 crore; and Latin America business grew by 54.11% to Rs 156.31 crore. The company's active pharmaceutical ingredient (API) business grew by 9.58% to 262.15 crore YoY.

Commenting on the Q3 performance, Glenn Saldanha, the chairman and managing director of Glenmark Pharmaceuticals, has said that, "While the US business lost some of its momentum in the third quarter, the India business continued to grow at a healthy pace, consistently outperforming industry growth. We expect the ROW region and the European business to gain traction in the coming few quarters."

"Despite the challenging macroeconomic environment globally, the organization still continued to record high single digit revenue growth and we hope that we can consistently grow the business every year," he added.

Meanwhile, the company said its board has approved raising upto $400 million by either by issuance of bonds/debentures/non-convertible debt instruments or any other securities or any combination thereof, of any of the above, for refinancing of bonds/FCCBs/loans.

Glenmark Pharmaceuticals is engaged in the development of new chemical entities (NCEs) and new biological entities (NBEs). Its segments are India, United States, Latin America, Europe and rest of the world (ROW).

Shares of Glenmark Pharmaceuticals dropped 6.49% to Rs 312. The stock hovered in the range of Rs 305.80 to Rs 346.30 so far.

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