Glenmark Pharma shares plunge nearly 10 per cent after Rs 104 crore loss in Q3
BusinessToday.in February 9, 2018
A day after Glenmark Pharma reported 78 per cent fall in net profit for the third quarter, the stock of the drug major dropped nearly 10 per cent to its 52-week low of Rs 524.20 on the Bombay Stock Exchange. on NSE, shares of Glenmark plunged 9.59 per cent to hit a one-year low of Rs 524. However, the stock recovered nearly 3 per cent to 537, still over 7 per cent lower as of 1:30 pm.
On Thursday, Glenmark Pharmaceuticals reported Rs 104.7 crore loss in December quarter on sharp decline in US sales. The company had reported a net profit of Rs 477.10 crore in the corresponding quarter of the previous year. Glenmark's consolidated revenue also declined by 13.07 per cent to Rs 2,203.66 crore for the third quarter, against Rs 2,535 crore a year ago.
Commenting on the results, Glenmark Pharma chairman Glenn Saldanha in a statement said: "The overall performance was driven by our India, Europe, ROW and API business. The US business continues to be very challenging. The India business rebounded and has shown good sales growth due to improvement in the overall demand environment."
Glenmark's revenues from US market declined by 40.21 per cent at Rs 735.8 crore in Q3 as against Rs 1,230 crore in the corresponding quarter last year. The revenue from Latin American market also declined by 5.15 per cent at Rs 89.8 crore from Rs 94.7 crore in the previous year's third quarter. However, sales for the formulation business in India witnessed 11.92 per cent jump in revenues at Rs 578.5 crore for the third quarter from Rs 516.8 crore in the corresponding period last year, the statement said.
Glenmark Europe's operations revenue for December quarter, was at Rs 2,24.75 crore as against Rs 1,95.70 crore, recording a growth of 14.84 per cent.
(With inputs from PTI)