Glenmark Pharma falls 16%, records biggest intra-day fall in 7 years

The stock recorded its sharpest intra-day fall since August 19, 2009

Glenmark Pharmaceuticals dipped 16% to Rs 760 on BSE in early morning trade after the company missed its March-quarter earnings estimate. It reported a consolidated net profit of Rs 184 crore in March 2017 quarter (Q4FY17), below an average analysts estimate of Rs 548 crore. The company had profit of Rs 149 crore in the same quarter year ago.

The stock recorded its sharpest intra-day fall in more than seven years. Earlier, on August 19, 2009, it tanked 17.4% during intra-day trade.

Revenue from operations during the quarter under review increased by single digit 6.5% to Rs 2,457 crore against Rs 2,307 crore in the corresponding quarter of previous fiscal. Analysts estimated revenues of Rs 2,713 crore for the reporting quarter.

On sequential basis, Glenmark's consolidated net profit declined 61% and revenues by 3%. The company posted net profit of Rs 476 crore and revenues of Rs 2,550 crore in Q3FY17.

Sales in US, the company’s biggest market, was up 53.5% year-on-year (YoY) to Rs 1,000 crore during the reporting quarter, whereas sales in India rose 6.9% at Rs 577 crore.

In Q3FY17, the company had recorded 102% YoY jumped in US sales at Rs 1,231 crore, while sales in India was up 5.9% at Rs 517 crore.

During the last four months, Glenmark’s Goa and Baddi manufacturing facility was inspected by the US Food and Drug Administration (USFDA).

The Baddi manufacturing facility at Himachal Pradesh did not receive any observations. The Goa manufacturing facility received 4 observations to which we have responded to the USFDA. At this point in time, we do not have any outstanding items with the USFDA regarding these plants, Glenmark Pharma said in a press release.

At 10:01 am, the stock was down 12.5% to Rs 792 on BSE as compared to 0.22% decline in the S&P BSE Sensex. It is trading close to its 52-week low of Rs 729 touched on June 24, 2016. The trading volumes on the counter jumped more than 15-fold with a combined 7.65 million shares changed hands on BSE and NSE so far.