Glenmark Pharma net profit rise 24%; Europe segment major contributor

Pharma service provider Glenmark Pharmaceutical registered consolidated net profit of Rs 226.7 crore for the June quarter ended 2016 (Q1FY17), rising by 23.94% yoy (year-on-year) and 52.35% qoq (quarter-on-quarter).

The revenue from operations stood at Rs 1943 crore, witnessing a growth of 17.92% yoy. However, the current data is a decline of 14.82% compared to the preceding quarter.

It’s consolidated operating profit (EBITDA – earnings before interest tax depreciation and amortization) was around Rs 379 crore, up by 5.51% yoy and 25.37% qoq. Also operating profit margin (OPM) was at 19.50%, contracting by 229 basis points yoy and 625 basis points qoq.

On standalone basis, the company’s net profit was at Rs 518.8 crore, increasing by 53.26% yoy and 1.30% qoq. The total income was around Rs 1640.8 crore, up by 31.49% yoy but down by 13.90% qoq.

While operating profit was recorded to Rs 600.8 crore, growing by 40.07% yoy and 16.84% qoq. It’s OPM was at 36.61%, expanding by 224 basis points yoy and 964 basis point qoq.

Glenn Saldanha, Chairman & MD, Glenmark Pharmaceuticals said, “In the first quarter of this financial year, nearly all our businesses have rebounded strongly and we  have seen good growth across all operating regions except Latam. The US business continues to perform well and the recent approvals for the business will ensure the growth momentum will continue. The Europe business performed well due to strong growth witnessed by the UK subsidiary. The ROW region also rebounded strongly due to a solid performance by the Russian business.

On geographical basis the company’s business was the following: 

Overall, Glenmark Pharma recorded robust growth across countries, with Europe being the major contributor to the business.

The share price of Glenmark Pharmaceutical has soared by Rs 27.35 or 3.27%, trading at Rs 862.50.