Glenmark Q3 profit zooms 64% to Rs 191 crore; firm to raise $400 million

New Delhi: Drug firm Glenmark Pharmaceuticals on Friday reported a 64.02 per cent jump in its consolidated net profit to Rs 190.83 crore for the quarter ended December 31, 2019, mainly on account of robust sales in the Indian market.

Its board also approved raising of funds up to USD 400 million (over Rs 2,855 crore) through issuance of securities.

The company had posted a net profit of Rs 116.34 crore in the corresponding period of the previous financial year, Glenmark Pharmaceuticals said in a filing to the BSE.

The firm's board has approved the "raising of funds up to USD 400 million by either by issuance of bonds / debentures / non-convertible debt instruments or any other securities or any combination thereof, of any of the above, for refinancing of bonds/FCCBs/loans...," Glenmark said.

Consolidated revenue of the company stood at Rs 2,735.56 crore for the quarter under consideration as against Rs 2,555.04 crore for the corresponding period a year ago.

"While the US business lost some of its momentum in the third quarter, the India business continued to grow at a healthy pace, consistently outperforming industry growth. We expect the ROW (Rest of the World) region and the European business to gain traction in the coming few quarters," Glenmark Pharmaceuticals Chairman and MD Glenn Saldanha said.

Despite the challenging macroeconomic environment globally, the company still continued to record high single-digit revenue growth and "we hope that we can consistently grow the business every year", he added.

Sales from the formulation business in India stood at Rs 788.83 crore for the third quarter ended December 31, 2019, as against Rs 667.53 crore in the previous corresponding quarter, recording a growth of 18.17 per cent, Glenmark said.

Glenmark Pharmaceuticals Inc USA registered revenue from sale of finished dosage formulations of Rs 799.82 crore for the quarter ended December 31, 2019, as against a revenue of Rs 855.67 for the previous corresponding quarter, recording a de-growth of 6.53 per cent, it added.

Shares of Glenmark Pharmaceuticals on Friday closed at Rs 333.65 per scrip on the BSE, up 1.83 per cent from its previous close.