S&P revises Glenmark outlook to 'negative' on weak operating performance

Glenmark's capex for the first quarter of fiscal 2020 was Rs 190 crore, in line with its guidance

Standard and Poor's (S&P) has revised the outlook for pharma major Glenmark to 'negative' on weaker-than-expected operating performance and refinancing risk for notes that mature in 2021.

"Glenmark's weaker-than-expected operating performance and elevated capital spending will result in low financial headroom over the next 12 months", rating agency S&P said in a statement on Wednesday. The drugmaker's rating has been affirmed at 'BB-'.

"The India-based generic drugmaker's free operating cash flow generation will be insignificant, despite lower capital spending guidance by the company's management and our modest growth assumptions", S&P added.

"The company's revenue growth in fiscal 2019 (the year