Glenmark posts muted numbers, margins trending lowerGLENMARK - 770 Change: -0.60 (-0.08 %)
News: Revenues de-grew 6% YoY to Rs 2777 crore on back of 16% YoY de-growth in US to Rs 663 crore while 15% YoY decline in India to Rs 1035 crore was on account of a high base due to sales of Covid-related products in Q1FY22. RoW markets grew 26% YoY to Rs 423 crore and Europe grew 8% YoY to Rs 330 crore. APIs sales increased by 7% YoY to Rs 325 crore. EBITDA margins declined 381 bps YoY to 15.5% mainly due to adverse operating leverage. EBITDA de-grew 25% YoY to Rs 432 crore while adjusted PAT declined 37% YoY to Rs 192 crore. Delta vis-à-vis EBITDA was mainly due to higher depreciation nd tax being partly offset by higher other income.
View: Glenmark’s numbers were below our expectations. Excluding Covid in base portfolio sales grew 10% YoY in this quarter. The 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 focused to meet key objectives for FY23 with 6-8% growth, steady EBITDA margins and prioritise free cash generation for further debt reduction.