Research-led global integrated pharma company Glenmark Pharmaceuticals on Thursday reported a standalone net profit of Rs 151.66 crore for the quarter ended March 31, an increase of 78.61% over Rs 84.91 crore registered in the corresponding quarter of the previous year. Total standalone income during the quarter under review has increased to Rs 687.25 crore from Rs 511.79 crore.
In consolidated terms, the company's total income has increased to Rs 1,691.48 crore during the fourth quarter of 2013-14 compared to Rs 1,330.90 crore during the corresponding period the previous fiscal.
Glenmark's consolidated revenue was at Rs 1,703.56 crore as against Rs 1,335.86 crore, an increase of 27.53%.
"We have reported another year of strong growth fueled by good performances across our key markets like the US, India and Europe; including our API business. In fact, we have consistently grown our topline by over 20% year-on-year for the past three years," said Glenn Saldanha, chairman & MD, Glenmark Pharmaceuticals, in a statement on BSE.
The adjusted net profit, however, is down almost 75% to Rs 43 crore for the quarter ended March 31 as against Rs 172 crore during the same period the previous year. The consolidated net profit (adjusted) during the financial year 2013-14 dipped to Rs 542.27 crore as against Rs 620 crore. The consolidated revenue for the year stood at Rs 6,006.93 crore, up 19.81%.
According to the company, the net profit is not comparable due to exceptional item of Rs 217 crore on account of provision made by Glenmark Generics Inc towards claims (including incidental expenses) of Abbott Laboratories in the patent litigation in respect of "TARKA" (oral anti-hypertensive medication).
The US business grew at 16.71% to Rs 500.85 crore during the quarter under review while the European formulations business grew at 29.51% to Rs 193.20 crore. The rest of the world (RoW) and the active pharmaceutical ingredient business respectively grew at 49.33% to Rs 342.53 crore and at 63.08% to Rs 153 crore. On the other hand, the company's Indian business reported only 7.88% growth to Rs 382.99 crore during the fourth quarter.
Pharma analyst Siddhant Khandekar of ICICI Direct said, "The growth for the company did not happen from where it was expected like the US and the Indian market. Unlike estimates of 22%, US market grew at only 17%. Rather RoW and APIs reported better growth numbers. Whether the India business suffered on account of trade-related issues or the price control order is yet to understand as last year when many other companies were attributing their week performance in the Indian markets to these reasons, Glenmark did not reported anything major. Also the provision towards claims of Abbott was earlier expected to be in tune of Rs 96-100 crore but it turned out to be Rs 217 crore. So there could be a portfolio churning on which a clarity is yet to come."
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