Profit down 35%, but topline at record Rs 1055 cr: Glenmark

The second quarter results of pharma major Glenmark has come across as quite a mixed bag. Profits have tanked nearly 35% at Rs 55 crore even though consolidated revenue grew 45.87%. However, Glenn Saldanha, managing director and chief executive officer of Glenmark is quite elated at the fact that this is the first time that revenues clocked by the company has crossed the Rs 1000 crore mark. Consolidated revenues for the company stands at Rs 1055.44 crore in Q2. He says that margins too were originally Rs 300 crore but for the forex losses of Rs 80-85 crore and the one-time payout to Paul Capital of Rs 130 crore, that was taken out of the balance sheet.

Saldanha says that business is expanding globally and the India business has grown at a rate of 19.5% on a yearly basis. Glenmark retains its guidance of 25% topline growth for the full year.
He also informs that the company has received Rs 110 crore from Sanofi this quarter and the final verdict on Tarka generic is awaited. "In case it is against us, we will go ahead and appeal," he says. Below is the edited transcript of the interview. Also watch the accompanying video. Q: Can you take us through the royalty payment which appears to have been the shocker for the market at this point?
A: We had about Rs 155 crore of revenue but against that, we did a settlement with Paul Capital where we ended up paying them contractually the USD 28.8 million which we expensed on the balance sheet (Profit & Loss) as opposed to capitalising it. So that