The Hindu Business Line : Glenmark Q2 net dips on Mumbai floods

Due to July's floods in Mumbai, the company's ability to replenish the stocks of its channel partners was severely affected during the last quarter.

Mumbai , Oct. 31

GLENMARK Pharmaceuticals Ltd has seen its net profit drop by 52 percent in its India operations for the three-month period ended September 30, 2005.

The company's net profit dropped to Rs 13.8 crore, as compared to Rs 28.9 crore for the second quarter ended September 2005.

The company's stand-alone revenues too dropped to Rs 138.3 crore for the period under review, down 13.66 per cent, a company communiqué said.

The stand-alone India revenues and profits for the second quarter of FY 2005 included a one-time income of Rs 18.3 crore received for the sale of GRC 3886 (Glenmark's prospective asthma drug) to Glenmark's wholly-owned Swiss subsidiary, Glenmark Pharmaceuticals SA, the company said.

Accordingly, an adjustment of Rs 13.8 crore needs to be made in the second quarter profits for Q2 FY05 before comparing it with the performance in this year, the company added.

A key reason for the decline of the stand-alone India revenues was the damage to medicine stocks due to July's floods in Mumbai. The company's ability to replenish the stocks of its channel partners was severely affected during the last quarter, the note added.

Mr Glenn Saldanha, Managing Director and CEO of Glenmark, however said in the statement: "We are confident of closing the distance between our present performance and targets and maintain our guidance on revenue and profit for the financial year 2005-2006."

Glenmark's stock price remained flat at Rs 278.45.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page