The Hindu Business Line : US generics biz helps Glenmark post two-fold rise in consolidated net

Chennai, July 28 Glenmark has posted a consolidated net profit after tax of Rs 115.38 crore for the quarter ended June 30, 2008, a two-fold growth from Rs 57.15 crore for the quarter ended June 30, 2007, on the back of its generics business in the US.

The company clocked a total income of Rs 471.74 crore for the quarter ended June 30, 2008, as compared with Rs 353.83 crore for the quarter ended June 30, 2007, the company told the Bombay Stock Exchange.

In a company statement, the company said that revenue from its generics business, Glenmark Generics Ltd (GGL) was Rs 240 crore (Rs 128 crore), registering growth of 87.42 per cent. The speciality business, including out licensing revenues, clocked a sales of Rs 225 crore (Rs 231 crore) for the quarter of the previous year, a marginal decline of 2.25 per cent.

This was due to the decline in primary sales for the Latin America and the Africa, Asia and CIS regions, the company said.

On a standalone basis, Glenmark posted a net profit after tax of Rs 56.84 crore for the quarter ended June 30, 2008, as compared to Rs 48.59 crore in the corresponding period of the previous year. Total income was Rs 194.42 for the quarter ended June 30, 2008, as compared with Rs 264 crore for the quarter ended June 30, 2007.

Last year Glenmark had announced the reorganisation of the company into its generics (Glenmark Generics Ltd) and speciality (Glenmark Pharmaceuticals Ltd) segments. The generics entity was to get listed in the first quarter of this fiscal, with the plans being to offload between 15 and 30 per cent equity.

However, Mr Glenn Saldanha, Managing Director and Chief Executive of the company, had earlier told Business Line that while listing is inevitable, the timing will depend on the valuation the company will get. Current market conditions did not make it conducive, he had indicated. Glenmark shares were down one per cent, at Rs 672.30 on the BSE.