Glenmark Pharma Q1 results: Profit increases to Rs 462 cr on strong demand

Glenmark Pharmaceuticals reported a more than two-fold growth in first-quarter profit on Wednesday, helped by strong demand for its drugs and a marginal decrease in costs.

The drugmaker reported consolidated profit before exceptional items and taxes of Rs 462 crore ($55 million) for the quarter ended June 30, from Rs 203 crore a year ago.

The company had a one-time charge of Rs 52.02 crorein the year-ago period for repairs at its manufacturing facilities in India and the United States.

Revenue from operations rose 8 per cent to Rs 3,244 crore, while expenses declined 1.4 per cent.

KEY CONTEXT

Indian drugmakers are benefitting from strong domestic demand for chronic and specialty drugs. Last month, Mankind Pharma reported a 10 per cent jump in profit, although it missed estimates due to higher costs.

However, Glenmark Pharma's profits have been pressured by legal costs and expenses related to remediation of its manufacturing facilities in India and the US, although it did not provide specific details about the remediation.

The company had also previously flagged an impact to domestic revenue due to changes in its distribution channel after selling its stake in Glenmark Life Sciences.

Glenmark Pharma, which makes anti-infective and respiratory therapeutics, said it aims to mitigate this impact in the current fiscal year through new product launches.