Glenmark Pharma hits 52-week low on subdued Q4 results

Shares of Glenmark Pharmaceuticals hit a fresh 52-week low of Rs 484 per share, slipping 9% on the BSE in early morning trade, after the company reported a decline of 17% in its consolidated net profit at Rs 1.52 billion for the quarter ended March 2018 (Q4FY18), on account of de-growth in US business. The drug company had profit of Rs 1.84 billion in the same quarter last fiscal.
On the National Stock Exchange (NSE), the stock was down 5% to Rs 506 in intra-day trade.

The company’s consolidated revenue during the quarter under review decreased by 7% to Rs 22.80 billion against Rs 24.57 billion in the corresponding quarter of previous year. US revenue declined 30% to Rs 7 billion from Rs 10 billion in previous year quarter.

Earnings before interest, taxation, depreciation and amortization (ebitda) margin stood at 17.4% from 15.97% in a year ago quarter.

“While FY2018 was a challenging year mainly on account of pricing pressure in the U.S., our other key markets like Europe and India performed well on the back of new product launches. Even though we expect pricing pressure to persist, we are glad that FY2019 has started on a positive note for us with approvals for some interesting products in the U.S.,” said Glenn Saldanha, chairman & managing director, Glenmark Pharmaceuticals.
The stock erases its partial early morning losses, trading 3% lower at Rs 514 on the BSE, as compared to 0.48% decline in the S&P BSE Sensex. A combined 2.05 million shares changed hands on the counter on the BSE and NSE so far.

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