Glenmark Life Sciences Posts 25% Rise In Q1 Profit To Rs 135 Cr

Glenmark Life Sciences reported a near-25 per cent rise in its first-quarter profit on Friday, led by robust growth of its mainstay active pharmaceutical ingredients (API) business in domestic as well as US and European markets.

The Mumbai-based drug maker said profit stood at Rs 135 crore for the quarter ended 30 June, compared with Rs 109 crore a year earlier.

The company, spun off from Glenmark Pharmaceuticals in 2019 to focus on the API business, said total revenue from operations climbed 18 per cent to Rs 587 crore during the quarter, with regulated markets including the US, Europe and India contributing 78 per cent.

Margins on earnings before interest, taxes, depreciation and amortization rose to 33.7 per cent from 31.9 per cent a year earlier.

Revenue from the API business, the company's biggest segment contributing 92 per cent to revenue, grew 13.3 per cent to Rs 504 crore.

The drugmaker, whose clients include Aurobindo Pharma and Torrent Pharmaceuticals, also exports APIs to markets including Japan, Latin America and the Middle East.

APIs are key biologically active elements in a drug that is responsible for delivering desired health effects. The company develops APIs for drugs that help treat conditions such as diabetes as well as cardiovascular and central nervous system diseases.

Shares of Glenmark Life Sciences rose as much as 2.7 per cent after its results before paring gains to trade at 632 rupees per share. They rose nearly 45 per cent during the first quarter, outperforming the Nifty Pharma index, which rose nearly 15 per cent.