Glenmark Life Sciences June quarter net profit rises 24% on year

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₹5,784.5 million for the June ended quarter (Q1FY24), up 18% year-on-year. Net profit during the period stood at ₹1,354.5 million, a 24% increase on year. The active pharmaceutical ingredients (API) manufacturing arm of Glenmark Pharmaceuticals (GPL) saw a 14.1% YoY rise in cost of raw materials to ₹2,982.13 million in the current fiscal year.

The company reported an Ebitda (earnings before interest, taxes, depreciation, and amortization) of ₹1,950 million, a 24.8% rise YoY. During the quarter, Glenmark Life Sciences recorded strong free cash generation of ₹982 million leading to cash & cash equivalents of ₹3,820 million as on 30 June. “Our performance in the quarter was driven by Generic API and the CDMO businesses.

Geographically, the US, Europe, RoW and India markets spearheaded this growth. We remain focused on our strategic priorities of building capacities as well as strengthening our product pipeline. This coupled with an improved demand environment and supply situation will act as a catalyst for growth in the coming quarters," said Yasir Rawjee, managing director and chief executive, Glenmark Life Sciences, Generic API revenues in Q1FY24 increased 13.3% YoY to ₹5,042 million, driven by strong growth in regulated markets of the US and Europe coupled with a strong performance in the India market driven by ex-GPL business.

GPL business in Q1FY24 increased by 18.6% YoY to Rs. 1,964 million, the company said in a statement. The company said that a 208KL of intermediate block at the Ankleshwar site is under completion of a total manufacturing capacity of 400 KL and will be operational in the second half of FY24, while a 50KL pharma capacity will be added this year in Dahej, Gujarat.