Glenmark Pharmaceuticals posts 36% fall in profit
Glenmark Pharmaceuticals Ltd has reported a fall of 36 per cent in its net profit in the second quarter of the year.
The fall in profit was mainly due to a one-time royalty-related payment and mark-to-market (MTM) requirements on some foreign currency denominated loans. It had to make a one time payment to of Rs. 131.68 crore during the quarter to exercise purchase option in an agreement with US-based venture fund firm Paul Capital Partners' Royalty Fund.
With the payment, the company has not further obligation to pay under the agreement that is linked to a dermatology business acquisition in 2005. Glenmark also suffered a mark-to-market loss of about Rs. 85 crore in loans in foreign currencies.
The net profit declined in the quarter to Rs. 55.80 crore compared with Rs. 86.17 crore a year earlier. The sales of the pharmaceutical company rose 46 per cent to Rs. 1,055.44 crore in the quarter. The company sales increased notably in three of its business regions including, the US, Latin America and the India.
Chief executive and managing director Glenn Saldanha said in a statement that the company was able to record strong revenue growth in the second quarter despite difficult global business environment.
He said, "Sales growth for the quarter has been around 30% due to good performance by the US, Latin America and the India business.