Indian drugmaker Glenmark Life Sciences' Q2 profit drops on temporary closure of facility

Alivus Life Sciences

24/10/2024 15:15

Oct 24 (Reuters) - Indian drugmaker Glenmark Life Sciences  GLEM.NS  posted a fall in
second-quarter profit on Thursday, hurt by the temporary closure of a manufacturing facility in the
western state of Gujarat.
    The Mumbai-based company said its profit fell to 953.2 million rupees (about $11 million) in the
three months ended Sept. 30, from 1.19 billion rupees a year earlier.
    Its revenue from operations fell nearly 15% to 5.07 billion rupees.
    For further results highlights, click  urn:newsml:reuters.com:*:nFWN3M01HE.
    
    KEY CONTEXT 
    The company said its quarterly revenue across geographies was hurt due to closure of its
manufacturing facility in Ankleshwar, Gujarat. However, it expects a recovery in the second half of the
current fiscal year. 
    Glenmark Life, like other makers of active pharmaceutical ingredients (API), has been benefitting
from increasing demand in their key Europe and U.S. markets as global drugmakers seek to reduce their
reliance on China.
    The company has over 130 APIs in its portfolio across key therapy areas such as cardiovascular,
oncology and anti-infectives.
    
    PEER COMPARISON
    
                                                Estimates (next        Analysts' sentiment       
                                                   12 months)                                    
                 RIC           PE       EV/EBI  Revenue   Profit  Mean     # of      Stock to    Div
                                        TDA     growth    growth  rating*  analysts  price       yield
                                                (%)       (%)                        target**    (%)
 Glenmark         GLEM.NS        23.71   16.02   12.42    12.95   Buy             6     0.99       2.15
 Lifesciences                                                                                    
 Ltd                                                                                             
 Granules India   GRAN.NS        20.26   11.92   13.97    35.27   Strong          4     0.87       0.27
 Ltd                                                              Buy                            
 Laurus Labs      LAUL.NS        47.93   20.05   14.96    95.70   Hold           10     1.15       0.18
 Ltd                                                                                             
 Divi's           DIVI.NS        65.09   46.81   15.97    26.52   Hold           23     1.28       0.52
 Laboratories                                                                                    
 Ltd                                                                                             
 * Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
 ** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is
trading above the PT
    
  JULY TO SEPTEMBER STOCK PERFORMANCE
-- All data from LSEG
-- $1 = 84.0450 Indian rupees

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JULY TO SEPTEMBER STOCK PERFORMANCE    https://tmsnrt.rs/3Yzi2xt
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 (Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)
 ((Kashish.Tandon@thomsonreuters.com; 8800437922;))