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    Glenmark Pharma Q4 Results: Profit declines 12.3% on higher input costs and lower demand

    Synopsis

    Glenmark Pharmaceuticals' Q4 consolidated profit before exceptional items and tax was INR3.09bn ($37.78m) for the quarter ended 31 March, down 12.3% compared to a year earlier, due to increased input costs and lower demand in the Indian drugs market. The firm posted one-time costs of INR8bn due to settlements over lawsuits in the US related to antitrust issues and consumer protection. While its sales rose 11.5%, the Indian drugs segment reported a 6.4% sales decline, accounting for 31% of its total, while North American sales grew by 15.3%.

    Glenmark Pharma Q4 Results: Profit declines 12.3% on higher input costs and lower demandiStock
    India's Glenmark Pharmaceuticals Ltd reported a 12.3% decline in fourth-quarter profit on Friday, hurt by higher input costs and lower demand in its domestic drugs business.

    Consolidated profit before exceptional items and tax fell to 3.09 billion rupees ($37.78 million) for the three months ended March 31, from 3.52 billion rupees a year earlier, the cetirizine maker said in a stock exchange filing.

    For the quarter, the company had reported a one-time expense of 8 billion rupees in settlements of antitrust claims and consumer protection lawsuits in the United States.

    Glenmark, which caters to the therapeutic areas such as diabetes, cardiovascular and oral contraceptives, reported a 11.5% rise in quarterly net sales.

    It included a 6.4% decline in sales from its India drugs segment, which accounted for 31% of total sales, while sales in its North America business, which had a 24% contribution, grew 15.3%.

    Input costs for the quarter rose 11% to 8.77 billion rupees from a year earlier.

    Shares of the Mumbai-based company settled 3.3% higher at 624.30 rupees ahead of its results on Friday. Glenmark Pharma shares had climbed 9.6% in the March quarter, comfortably outperforming the Nifty Pharma index that fell 4.6%.

    Glenmark Life Sciences Ltd, the company's unit that spun off in 2019 to focus on the active pharma ingredients business, reported last month a 48% rise in fourth-quarter profit, helped by growth in its core business of making APIs for drugs.

    Glenmark's rivals Dr Reddy's Laboratories Ltd and Cipla Ltd earlier in the month had posted higher profits for their fourth quarter



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    (What's moving Sensex and Nifty Track latest market news, stock tips and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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