Glenmark Pharmaceuticals, a Rs 2000 crore pharma giant from Mumbai, has suffered a heavy setback during the first quarter ended June 2009 on account of hefty interest burden and higher depreciation charges. Its consolidated net profit declined by 53.7 per cent to Rs 53.45 crore from Rs 115.38 crore in the corresponding period of last year. Its profit before interest, depreciation and taxation also dropped by 15.1 per cent to Rs 128.95 crore from Rs 151.88 crore. With significant fall in profits, its earning per share nosedived to Rs 2.11 from Rs 4.63.
Glenmark scrip declined by Rs 7 to Rs 264 on BSE after the announcement of working results. The scrip opened at Rs 272 and reached at its highest level at Rs 274 today, but close at Rs 264 due to lack of support.
Glenn Saldanha, CEO and managing director, said, "Sales growth across regions for the quarter has been encouraging. Even though the environment across markets remains subdued, we still managed to accelerate sales growth in the first quarter. For the remaining part of the year, the focus will be launch new products across operating branded generics markets, reduce costs and improve working capital across operating markets. For the US generics market, we will continue to file ANDAs and launch new products to grow that business organically. On the drug discovery programme, top line results on phase II B COPD studies are expected in the second quarter for our lead molecule Oglemilast."
Its sales of formulations in India increased to Rs 165.92 crore for the quarter under review as compared to Rs 139.72 crore in the similar period of last year, a growth of 18.8 per cent. The semi regulated markets of Africa, Asia and CIS grew by 99 per cent to Rs 78.60 crore. Its revenue from Latin America was at Rs 33.54 crore as against Rs 31.21 crore, an increase of 7 per cent. Glenmark's European operations registered revenue growth of 118 per cent at Rs 26.93 crore as compared to S 12.37 crore.
The sales of Glenmark Generics Inc., USA declined by 9.9 per cent to Rs 172.05 crore for the first quarter as against Rs 190.88 crore. The European generic business posted revenue of Rs 4.14 crore. Its API's sales moved up to Rs 55.68 crore from Rs 40.12 crore.