Glenmark Q2 PAT dips 2% on higher finance & tax expenses

Moneycontrol Bureau

Glenmark Pharma disappointed the street on every parameter on Thursday with second quarter (July-September) profit after tax falling 2 percent year-on-year to Rs 157.3 crore, impacted by higher finance cost and higher tax outflow.
Higher finance cost increased to Rs 48 crore from Rs 38 crore and tax expenses jumped to Rs 63 crore from Rs 47 crore year-on-year.
Revenue of the healthcare company grew 17 percent on yearly basis to Rs 1,463 crore, driven by US and India businesses.
According to a CNBC-TV18 poll, analysts on an average had expected the pharma company, which declared results after market hours, to report a net profit of Rs 186 crore on revenues of Rs 1,484 crore for the quarter.
US Generics business rose 29.5 percent Y-o-Y to Rs 558 crore while revenues from Europe surged 33 percent to Rs 52 crore in the quarter gone by.
Sales from formulations business in India jumped 21.4 percent year-on-year to Rs 417 crore, which was much higher than industry average.
"Although the operating environment continues to remain challenging in emerging markets, we are reasonably confident of continuing on the same growth trajectory," Glenn Saldanha, chairman & MD said.
Generics business reported a growth of 22.5 percent on yearly basis at Rs 710.6 crore and speciality formulations grew 9.7 percent Y-o-Y to Rs 740 crore (excluding licensing income) during September quarter.
Earnings before interest, tax, depreciation and amortisation soared 8 percent Y-o-Y to Rs 261.2 crore while operating profit margin declined 150 basis points year-on-year to 17.8 percent in the quarter gone by.
Glenmark Pharma's stock was closed at Rs 552.90, up 3.19 percent on the BSE.