Glenmark Pharma tumbles after Q2 PAT declines 8% YoY

Glenmark Pharmaceuticals tumbled 6% to Rs 480.80 after the drug maker's consolidated net profit slipped 8.4% to Rs 233.99 crore on 5.2% increase in net sales to Rs 2,908.12 crore in Q2 September 2020 over Q2 September 2019.

Shares of Glenmark Pharma snapped four days gaining streak after weak Q2 performance. The counter had gained 8.11% in four days to Rs 511.5 on 6 November 2020, from its closing low of Rs 473.15 on 2 November 2020.

On a consolidated basis, profit before tax (PBT) fell 2.3% to Rs 339.38 crore in Q2 September 2020 as against Rs 347.30 crore in Q2 September 2019. Current tax expense for the quarter soared 32.7% to Rs 136.73 crore as against Rs 103.02 crore in Q2 September 2019. The Q2 result was declared after trading hours on 6 November 2020.

EBITDA (excluding other income) was at Rs 569.92 crore for the quarter ended 30 September 2020 as against Rs 450.40 crore in the previous corresponding quarter last year, registering an increase of 26.54% Y-o-Y (year-on-year). Forex loss to the extent of Rs 17.11 crore was recorded in other expenditure during Q2 FY21.

Glenn Saldanha, the chairman & managing director (MD) of Glenmark Pharmaceuticals, has said: "Our relentless focus on costs and new product introductions during these challenging times have helped increase revenue and operating profit in the second quarter of this financial year. The India and the API business performed well along with the Europe and the ROW region. Even though the global macro-economic environment continues to remain challenging due to the ongoing pandemic, our manufacturing and supply chain teams continue to work tirelessly to service the needs of our patients all over the world. We hope that our efforts will sustain the momentum the business has garnered during the second quarter through the course of this financial year."

During the period under review, India business grew by 17.22% to Rs 1050.69 crore, Europe business grew by 11.59% to Rs 318.12 crore, Africa, Asia and CIS Region (ROW) business grew by 9.11% to Rs 380.58 crore, API business grew by 19.11% to Rs 321.33 crore.

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. Glenmark's key therapy focus areas globally are respiratory, dermatology and oncology.

Powered by Capital Market - Live News