Glenmark Q2 PAT seen up 158% to Rs 144 cr

Glenmark Pharma is likely to report a profit after tax of Rs 144 crore in the second quarter of FY13, a sharp growth of 158 percent compared to low base of Rs 55.8 crore in a year ago period. In the quarter ended September 2011, the company had recorded mark-to-market foreign exchange loss of Rs 81 crore.

For the September quarter of 2012, analysts expect a forex gain for Glenmark. Nomura, in its preview report, expect Glenmark to report a forex gain of Rs 36 crore.

Revenues are seen going up by 7 percent to Rs 1,131 crore from Rs 1,056 crore during the same period.

Earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to be flat at Rs 222.8 crore as against Rs 225.6 crore.

Analysts expect 10-15 percent revenue growth in the US on the back of new launches and ramp up in oral contraceptives (OCs). Glenmark is the market leader in Singulair generic with 25 percent market share + OCs recoded a 68 percent increase in sales for August 2012 as against June.

Indian business is expected to grow over 15 percent YoY.

Analysts are expecting more than 30 percent growth in generics while branded business is likely to grow over 15 percent.

Operating profit margin is expected to fall by 100 basis points YoY to 20 percent due to higher R&D expenditure.