India's Glenmark Pharma Q1 profit drops on higher expenses

Alivus Life Sciences

11/08/2023 15:04

BENGALURU, Aug 11 (Reuters) - India's Glenmark
Pharmaceuticals Ltd  GLEN.NS  reported a 22% decline in
quarterly profit on Friday, hit by higher expenses and a
one-time cost. 
    Consolidated net profit fell to 1.50 billion rupees ($18.12
million) for the three months ended June 30, from 1.93 billion
rupees a year ago, the cetrizine maker said.
    Glenmark, which caters to therapeutic areas such as
diabetes, cardiovascular and oral contraceptives, reported a 19%
rise in total expenses to 30.37 billion rupees. This included a
86.7% spike in finance costs. 
    Expenses also increased due to a one-time cost of 520.2
million rupees spent during the quarter for repairs at its
various manufacturing facilities in India and the United States.
    The company's India drugs segment, which accounted for about
31% of total sales, rose by 2.8%, while its North America
business, which contributed 23.8%, grew 22%. This helped net
sales rise 22.6% to 33.36 billion rupees.
    Last quarter, the company's revenue was hurt due to a lower
demand in its India business.       
    Glenmark's rivals Dr Reddy's Laboratories  REDY.NS  and
Cipla  CIPL.NS  had posted higher profits last month on stronger
sales. 
    Last month, unit Glenmark Lifesciences Ltd  GLEM.NS  had
posted a near 25% rise in first-quarter profit, helped by growth
in its active pharma ingredient business.
    Shares of the Mumbai-based company settled 1.1% lower on
Friday ahead of its results. Glenmark Pharmaceuticals' shares
had climbed 45.5% in the April-June quarter, outperforming the
Nifty Pharma index  .NIPHARM  that rose 14.6%.

($1 = 82.7960 Indian rupees)

 (Reporting by Biplob Kumar Das in Bengaluru; Editing by
Shailesh Kuber)
 ((Biplobkumar.das@thomsonreuters.com; 9101861583;))