Glenmark Pharmaceuticals (GLENMARK) Q4 00/01 earnings summary

Executive summary

• FY01 turnover from operations rose to ₹192.31cr from ₹145.34cr; PAT was ₹17.09cr versus ₹21.68cr, with higher interest and depreciation weighing on earnings.

• Sales growth of 33.4% exceeded the Indian pharma industry’s 8.1%; expansion into diabetes, exports, R&D and regulated-market generics advanced the shift toward a research-based global business.

Financial highlights

• Turnover from operations reached ₹192.31cr, up from ₹145.34cr; exports were ₹16.50cr, up 30% per the Directors’ Report and 35% in the highlights section.

• PBDIT was ₹32.03cr, up 3.93%; PBT fell to ₹18.61cr from ₹28.67cr and PAT to ₹17.09cr from ₹21.68cr.

• Interest expense increased to ₹8.32cr from ₹1.04cr; depreciation rose to ₹5.10cr from ₹1.11cr.

• FY00 other income of ₹15.45cr included IPO interest and subsidiary dividend; FY01 other income was ₹2.12cr.

• Net sales after ₹20.38cr of distributor inventory returns grew 32% YoY; gross sales were ₹211.98cr.

Outlook and guidance

• FY02 target: sustain 30% topline growth, improve margins from the two-tier distribution system and increase returns from acquired brands and recent investments.

• No significant FY02 capex was anticipated; expected cash generation was earmarked for debt repayment and lower interest costs.

• FY02 priorities included reducing inventory and receivable days, improving sales-force productivity, securing Goa facility approvals and increasing asset utilization.

• R&D spending was expected to reach 4% of turnover in FY02, with $2m planned for pre-clinical studies and an IND filing targeted within a year.