Glenmark Pharma Posts Lower January- March Profit On One-Time Hit

Glenmark Pharmaceuticals Ltd. posted a sharply lower-than-expected consolidated net profit for the March quarter, dragged down by a hefty one-time cost. Adjusted for the exceptional item, however, the drugmaker comfortably beat analysts' expectations.

Net profit for the quarter came in at ₹46.50 million, hit by a one-time charge of ₹3.73 billion. Excluding this, adjusted net profit stood at ₹3.47 billion, well above the Street estimate of ₹2.85 billion, the company said in a release late Friday.

The one-time charge included ₹1.75 billion as a reworked settlement payment to three plaintiff groups in the US over antitrust and consumer protection cases. Glenmark also booked an exceptional loss of ₹1.98 billion related to restructuring and staff costs at its innovation arm, Ichnos Glenmark Innovation.

Consolidated revenue rose over 6% on year to ₹32.56 billion but was down 4% from the previous quarter and missed estimates pegged at ₹34.20 billion.

Total expenses during the quarter inched up on year to ₹28.87 billion, led by a 64% spike in stock-in-trade purchases to ₹3.45 billion. Cost of materials consumed rose over 5% to ₹7.95 billion, while staff costs were up 5% at ₹7.37 billion. Other expenses edged up to ₹8.70 billion.

On the positive side, finance costs dropped over 55% to ₹667.1 million and depreciation, amortisation, and impairment costs fell more than 17% to ₹1.25 billion.

Operating EBITDA for the quarter was ₹5.61 billion with a margin of 17.2%.

For 2024-25, Glenmark Pharma reported a consolidated net profit of ₹10.47 billion, recovering from a loss of ₹15.02 billion in 2023-24. Revenue for the year grew to ₹133.22 billion from ₹118.13 billion, while full-year EBITDA stood at ₹23.51 billion with a margin of 17.6%.

The company announced a final dividend of ₹2.50 per share for 2024-25.