Glenmark Pharma revenues in line but margins take hitGLENMARK - 793 Change: 12.65 (1.62 %)
News: Revenues grew 6% YoY to Rs 3019 crore driven by 18% YoY growth in Europe to Rs 497 crore, 7% YoY growth in India to 885 crore and 18% YoY growth in RoW markets to 548 crore. This was partially offset by YoY de-growth of 8% in US to Rs 738 crore. APIs was flat YoY at Rs 328 crore. EBITDA margins declined 295 bps YoY to 15.3% mainly due to lower gross margins (down 133 bps YoY) and higher other expenditure. EBITDA de-grew by 11% YoY to Rs 463 crore while Adjusted PAT grew by 2% YoY to Rs 238 crore. Delta vis-à-vis EBITDA was mainly due to higher other income. [Note: Glenmark incurred one-time loss of Rs 82.5 crore on account of recall of products and remediation cost of Monroe facility].
Views: Glenmark’s India’s non-COVID base portfolio grew 15.5% in Q4 while consumer business was led by new product launches like Candid Cream. Company witnessed healthy growth in both its key markets of Western Europe and Central Eastern Europe during the quarter while there was healthy growth in base business across geographies in RoW markets. Glenmark is focussed to meet key objectives for FY23 with 6-8% growth, steady EBITDA margins and prioritise free cash generation for further debt reduction.