InvestorQ : What is your view on the latest quarter results of Glenmark Pharma for the Dec-20 quarter?
Debbie Mascarenhas made post

What is your view on the latest quarter results of Glenmark Pharma for the Dec-20 quarter?

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Arti Chavan answered.
1 week ago
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It was an interesting set of numbers from Glenmark in the quarter. In fact, its Q3 PAT was up 30% at Rs.248 crore on the back of inventory efficiency and also the benefit of exceptional gains in the quarter. The top line sales were flat with just 1.87% growth in revenues at Rs.2,787 crore.

The India business of Glenmark grew 11.82% while Europe business saw marginal growth of just about 1.42%. The laggard in the quarter was the US business which declined by 2.43% in Q3. In terms of specific verticals, the active pharma ingredients or API business which grew by 22% yoy added the icing on the cake.

Operating profits of Glenmark for the Dec-20 quarter were up 24.2% at Rs.415 crore on the strength of handling inventory a lot more efficiently in the face of rising input costs on account of the global supply chain constraints. This resulted in OPM improving from 12.21% in Dec-19 quarter to 14.89% in the latest quarter

On the PAT growth front, Glenmark benefited from exceptional gains of Rs.13.5 crore on transfer of its hygiene brands; V-Wash and Momat across certain geographies. This more than made up for the fall in miscellaneous income in the quarter. PAT margins expanded from 6.98% to 8.91% on a yoy basis.

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