Glenmark Life Sciences posts Q2 results, profit up on back of API boost

India's Glenmark Life Sciences reported an 11.1 per cent rise in second-quarter profit on Friday, led by strong growth in its mainstay active pharmaceutical ingredients (API) business in domestic as well as U.S. and European markets.

The Mumbai-based drugmaker said its profit rose to Rs 113 crore ($14.3 million) for the quarter ended Sept. 30, from Rs 107 crore year earlier.

The company, spun off from Glenmark Pharmaceuticals in 2019 to focus on the API business, said its revenue from operations jumped nearly 17 per cent to 5.95 billion rupees, with regulated markets including the US, Europe, Latin America and India contributing 80 per cent.

However, a nearly 18 per cent rise in expenses ate into the company's core profit margin, which contracted to 29 per cent from 30.2 per cent a year earlier.

Revenue from the API business, the company's biggest segment contributing 95 per cent to revenue, grew 19.7 per cent to Rs 543 crore rupees.

Last month, parent Glenmark Pharma said it would sell a 75 per cent stake in the Life Sciences unit to detergent maker Nirma and use the proceeds to repay debt.

The drugmaker, whose clients include Aurobindo Pharma and Torrent Pharmaceuticals, also exports APIs to markets including Japan and the Middle East.

The company develops APIs for drugs that help treat conditions such as diabetes and central nervous system diseases.

Shares of Glenmark Life Sciences advanced 0.6 per cent after its results. They jumped 8.6 per cent during the September-quarter, compared with a 12 per cent rise in the Nifty Pharma index.