Glenmark Pharma share price opens almost 10% lower after Q2 earnings

Glenmark Pharma share price opened almost 10 per cent lower on the occasion of Diwali Muhurat Trading 2023 on Friday, November 12. The stock opened at ₹702.05 against the previous close of ₹777.60. However, it pared losses sharply and traded 1.04 per cent lower at ₹769.55 around 6:20 pm on BSE.

The pharma company on November 10 reported a consolidated revenue growth of 6.3 per cent and adjusted EBITDA growth of 8.3 per cent year-on-year (YoY) for Q2 FY24.

“For the second quarter of FY24, Glenmark’s consolidated revenue was at ₹3,587.9 crore as against ₹3,375.2 crore recording an increase of 6.3 per cent YoY. Adjusted EBITDA was at ₹673.2 crore in the quarter ended Sept 30, 2023, as against ₹621.6 crore in the previous corresponding quarter, registering an increase of 8.3 per cent YoY, and margins of 18.8 per cent,” Glenmark Pharma said in its exchange filing.

Glenn Saldanha, Chairman and Managing Director, Glenmark Pharmaceuticals Ltd. Said, “We maintained a strong growth momentum during the quarter that was led by Europe and the RoW markets. We continue to take strides and move up the value chain with the in‐licensing of Winlevi for Europe and South Africa.”

“The recently announced proposed divestment of 75 per cent stake in Glenmark Life Sciences is another step in this direction. Our first global brand, Ryaltris, has demonstrated robust growth across the 29 markets in which it is already present. Our partner in China successfully completed the Phase 3 clinical trial on Ryaltris; with the product meeting the primary endpoint. We are expecting to launch it in newer markets over the course of the year.”

The company’s sales from the formulation business in India in Q2FY24 was at ₹1,121.7 crore, up 2.8 per cent YoY. Its North America segment registered revenue from the sales of finished dosage formulations of ₹739.2 crore, recording a decline of 1.9 per cent YoY. Revenue from Asia, MEA, LATAM and RCIS Region (RoW) grew 19 per cent YoY while Glenmark Europe’s operations revenue grew 58.4 per cent YoY, according to the company’s exchange filing.

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