Glenmark Pharmaceuticals (GLENMARK) Q4 01/02 earnings summary

Executive summary

• FY2001-02 consolidated turnover rose 49.89% to Rs 285.96 crore; profit after tax rose 36.22% to Rs 23.28 crore.

• Domestic formulations, new product launches, acquired Lyka brands, exports and initial API activity supported growth; industry rank improved to 26 from 29.

Financial highlights

• Consolidated turnover from operations Rs 285.96 crore vs Rs 190.78 crore; PBDIT Rs 51.31 crore vs Rs 32.03 crore; PBT Rs 29.08 crore vs Rs 18.61 crore.

• Consolidated PAT Rs 23.28 crore vs Rs 17.09 crore; current tax Rs 2.36 crore and deferred tax charge Rs 3.44 crore.

• Exports, including subsidiary generic sales, reached Rs 52.05 crore, up 248% YoY, and represented 18.20% of consolidated turnover.

• EBITDA as a proportion of total income rose to 17.69% from 16.47% YoY, supported by logistics changes, lower key API prices and export mix.

Outlook and guidance

• FY2002-03 priorities include healthy topline growth, stronger diabetes presence, margin improvement through cost control and productivity, and more launches in focused segments.

• Plans include completing pre-clinical studies and advancing GRC 3015 and GRC 1087 to Phase I, obtaining regulatory approvals for the Goa facility, and expanding API and international markets.

• Glenmark Laboratories expected to file its first ANDA in 2003; the Goa facility was being prepared for developed-market approvals.