Glenmark Pharma leaps 7% after posting two-fold jump in Q1 profit

The company's other income for the quarter rose to Rs 58.5 crore from Rs 1.7 crore

Shares of Glenmark Pharmaceuticals rose as high as 7 per cent to Rs 508.50 on the BSE on Monday after the company posted an over two-fold increase in consolidated net profit at Rs 254.04 crore for the quarter ended June 2020 (Q1FY21).

The company had reported a net profit of Rs 109.28 crore for the April-June period of 2019-20.

Consolidated revenue stood at Rs 2,344.78 crore for the first quarter, as compared to Rs 2,322.87 crore in the year-ago period, Glenmark Pharmaceuticals said in a regulatory filing. Other income for the quarter rose to Rs 58.5 crore from Rs 1.7 crore.

On the operational front, Glenmark Pharma's earnings before interest, tax, depreciation, and ammortisation (Ebitda) rose 39.8 per cent YoY while margins rose to 20.4 per cent from 14.7 per cent last year.

"It has been a challenging quarter across all markets due to the ongoing pandemic. Despite the difficult operating environment, we managed to record sales growth for the organisation. We focussed on controlling costs on all fronts and will continue with these efforts for the remaining part of the financial year," Glenmark Pharmaceuticals Chairman and MD Glenn Saldanha said.

The company was the first entity in the country to launch Favipiravir for the treatment of mild to moderate Covid-19, he said.

The company's formulation sales in the domestic market during the first quarter rose to Rs 779.89 crore from Rs 752.21 crore in the same period of previous fiscal, up 3.68 per cent.

Further, US-based Glenmark Pharmaceuticals Inc reported revenue of Rs 742.64 crore for the first quarter as against Rs 730.89 crore in the year-ago period.

At 9:52 AM, the stock was trading 2.5 per cent higher at Rs 487.35 as compared to a flat S&P BSE Sensex. Around 68 lakh shares have so far changed hands on the NSE and BSE, combined.