Glenmark Pharma net loss widens to Rs 1,239 cr in Q4 FY24

Glenmark Pharmaceuticals reported net loss of Rs 1,238.64 crore in Q4 FY24 as compared with net loss of Rs 549.49 crore in Q4 FY23.

Revenue from operations increased 1.94% to Rs 3,016.00 crore in Q4 FY24 as compared with Rs 2,958.36 crore in Q4 FY23.

Profit before exceptional items and tax stood at Rs 977.61 crore in Q4 FY24, steeply higher than Rs 111.33 crore posted in corresponding quarter previous year. The firm reported exceptional itmes of Rs 446.78 crore during the fourth quarter of FY24.

EBITDA stood at Rs 504.3 crore in Q4 FY24, registering the growth of 26.74% as compared with Rs 397.9 crore in Q4 FY23. During the quarter, EBITDA margin improved to 16.5% as against 13.3% in Q4 FY23.

In India, sales from the formulation business jumped 12.92% to Rs 939.1 crore in Q4 FY24 as compared with Rs 831.6 crore recorded in corresponding quarter previous year.

In terms of secondary sales, Glenmarks India business continued to outperform the overall industry in terms of growth. As per IQVIA March 2024 data, Glenmarks India formulation business recorded growth of 11.4% in the fourth quarter.

The North America business registered revenues from the sale of finished dosage formulations of Rs 755.7 crore ($ 91.0 million) for the fourth quarter of FY24, down 12.41% as against revenue of Rs 862.8 crore ($ 105.3 million) recorded in fourth quarter of FY23. The overall business growth remained challenging on account of lack of new product launches and delay in scale-up of recent launches.

During Q4 FY24, revenues from the Asia, MEA, LATAM and RCIS (RoW) region were Rs 752.8 crore as against Rs 686.4 crore for the previous corresponding quarter, recording growth of 9.67%.

Glenmark Europes operations revenue for the fourth quarter of FY 2023-24 was increased marginally to Rs 611.8 crore as compared with Rs 607.8 crore posted in Q4 FY23. The companys European operations continued to remain strong in terms of overall business performance. While the branded markets in the region have performed well, overall growth in the fourth quarter is impacted due to softness in the tender market.

Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals, said, This past year has been a period of significant transition and transformation for Glenmark. We successfully divested a majority stake in Glenmark Life Sciences, concluding the year in a strong net cash positive position. Our branded markets continued to deliver robust growth, particularly in Europe and other key international markets. While we encountered some headwinds in our US business, we remain optimistic about ability to regain our growth trajectory in the coming year.

Further he added, We have made significant progress in advancing our strategy of building global brands. The successful commercialization of RYALTRIS, our novel allergic rhinitis treatment, in 34 markets worldwide is consistently gaining market share in these geographies. Additionally, we have also in-licensed two specialty products - Winlevi and Envafolimab. As we continue to move up the value chain and enhance our product mix, we are confident of achieving significant improvement in our operating margins going forward.

Meanwhile, the companys board has declared a dividend of Rs 2.5 per share for the financial year 2023-24.

Glenmark Pharmaceuticals is a global innovation-driven pharmaceutical company with presence across specialty, generics and OTC businesses.

The scrip rallied 7.34% to Rs 1,111.40 on the BSE.

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