Glenmark Life Sciences Q2 results: PAT rises 11%, revenue up 16.9%

Generic API revenues increased by 19.7 percent this quarter due to growth in US, LATAM and Europe regulated markets

Glenmark Life Sciences posted an 11 per cent year-on-year increase in profit after tax (PAT) during the quarter concluded on September 30, 2023, reaching Rs 118.7 crore. There was a 16.9 per cent increase in its revenue from operations, which came in at Rs 595.4 crore, in contrast to Rs 509.2 crore in Q2 FY23. This increase in PAT can be attributed to changes in inventories of finished goods.

On a sequential basis, the company exhibited a 2.9 per cent increase in revenue, whereas the PAT declined by 12.3 per cent and the Ebitda also declined by 11.5 per cent. The decline in the PAT can be attributed to the rise in employee cost by 39 per cent and the cost of materials consumed, with changes in inventories of finished goods increasing by 10 per cent.

Commenting on the results, Tushar Mistry, chief financial officer of Glenmark Life Sciences, stated, "Q2 FY24 is marked by continued growth momentum, complemented by steady margins. While Ebitda and PAT margin witnessed some pressure due to higher operational expenses, these are only transitory in nature."

Generic API revenues increased by 19.7 per cent this quarter due to growth in the US, LATAM, and Europe-regulated markets.

Yasir Rawjee, managing director and chief executive officer of Glenmark Life Sciences, stated, "Geographically, regulated markets including the US, Europe, LATAM, and India continue to spearhead our growth. In light of the announced change in ownership, I see this development as a pivotal opportunity to augment our standing in the API industry and continue the trajectory characterised by growth and healthy margins."

Last month, detergent soap maker Nirma acquired a 75 per cent stake in Glenmark Life Sciences at an approximate value of about Rs 7,535 crore, in a deal reflective of rising investment interest in the healthcare and pharmaceutical industry. The deal size is estimated to be Rs 5,651 crore.