Glenmark Reports 25% Growth In Revenues

Glenmark Pharma reported its Q4FY13 numbers earlier today. The company had its topline grow by 25.3% to Rs 1335 crore, on a yearly basis. Its net profit however witnessed YoY growth of 11% to Rs 166.7 crore. For the year ended FY13, the company has achieved 25% growth in the topline to Rs 5012 crore and 33.5% growth in the bottom line to Rs 614 crore.

Glenmark has two business segments - Specialty Business and Generics Business

Specialty Business

Glenmark’s specialty formulation business (excluding the licensing income) posted 25% growth in revenues to Rs 741 crore in Q4FY13. Its domestic formulation business grew by 32% which is above the domestic market growth rate. The company has been achieving higher growth rate over a few quarters and has maintained this streak during this quarter as well. During the quarter under review, formulations in Africa, Asia and CIS have grown by 21%, which is also an impressive growth rate. Formulation revenues from Latin American and Caribbean however grew by a moderate 4.75%. These geographies however are not big contributors in its topline.

Generics Business

During Q4FY13, revenues from the company’s generics business rose by 25% to Rs 586.5 crore, on a yearly basis. Revenues from the US clocked Rs 429 crore, growing by 21% YoY. European generics revenues grew impressively by 62% which is huge considering the fact that the region is going through a slowdown and that it has impacted government tenders offered to pharma companies.

Although the company has displayed an impressive performance on its topline, it has reported a decline in its margins. This however is one off in nature as there is rise in the stock in trade. The employee benefit expenses have also risen during the quarter. On the non operating side, the company has seen finance cost growing by 6% to Rs 43.5 crore.

On the balance sheet front, it has reported rise in long term borrowings to Rs 1920 crore from Rs 1312 crore a year earlier. Its debt to equity ratio however remained below 1x, which is at the comfortable level. Its current ratio is over 1x indicating adequate liquidity. Its cash and current investments have increased during the year, which indicates a healthy balance sheet.

Overall the result looks good as the company has beat market expectations of Rs 150 crore in the bottom line. The stock is likely to show a good performance going ahead.