Glenmark Pharma Q3FY16 net profit up 48 per cent, led by higher sales in the US

Glenmark Pharmaceuticals Limited, the research-led global integrated pharmaceutical company yesterday announced its results for the third quarter and nine months ended December 31, 2015; which saw its consolidated profits jump 48 per cent on a yearly basis to Rs 169.95 crore led by a robust sales growth in the US and domestic markets.

Glenmark Pharma’s revenue from operations increased by 3.24 per cent in Q3FY16 on a Y-O-Y basis (year on year) to Rs 1756.37 crore compared to Rs 1701.31 crore attained in the same quarter of the previous fiscal, aided by a strong growth witnessed in the key markets like US and India. The company’s EBITDA for the quarter stood at Rs 369.77 crore as compared to Rs 265.66 crore in the same period last fiscal, reflecting a growth of 39.19 per cent. Company’s consumption of raw material as a percentage to its total revenue decreased by 520 basis points, thus boosting the operational efficiency of the company. Margins for the quarter in review improved by 543 basis points to 21.05 per cent from 15.62 per cent in the corresponding quarter of the previous fiscal. Profit after tax for the December quarter was Rs 169.95 crore as compared to Rs 114.77 crore in the previous fiscal, replicating a growth of 48.08 per cent on a yearly basis.

US market remained a key priority area for the company as 34 per cent of the total revenues generated for the quarter in review came from the US formulation business as it registered an impressive growth of 20.04 per cent on a yearly basis. Indian operations of the company contributed 27.45 per cent to the total revenue for the quarter, and domestic formulations business grew at 12.69 per cent in Q3FY16. Latin American business saw a sharp drop in its revenues as it fell by 47.23 per cent Y-O-Y.

Active Pharmaceutical Ingredients (API) business globally was at Rs 144.98 crore for the quarter ending December, as against Rs 146.49 per cent for the previous corresponding quarter, reflecting a de-growth of 1 per cent.

Sequentially revenues remained under pressure as they declined by 6.31 per cent. EBITDA too saw a dip as it decreased by close to 8 per cent Q-O-Q (quarter on quarter). PAT declined by 15.20 per cent for the quarter in review.

For the nine months ended Dec 31, 2015, Glenmark’s consolidated revenue was at Rs. 5342.9 crore as against Rs. 4868.9 crore, an increase of 9.73 per cent over the previous corresponding period.

Responding to the abundant set of Q3 numbers Glenmark Pharma scrip soared 3 per cent in late trade to hit an intra-day high of Rs 775.60 on NSE. The stock has been on a correction mode as it has declined by more than 18 per cent in the past 3 months.