Glenmark Pharmaceuticals (GLENMARK) Q4 02/03 earnings summary

Executive summary

• FY02/03 operating turnover rose 28% to Rs 3,336.4m; PAT increased 46% to Rs 331.9m, while domestic formulations grew well ahead of the market.

• Strategy shifted toward regulated-market growth through US distribution, API capacity, ANDA/DMF filings and drug discovery investment.

Financial highlights

• Operating turnover was Rs 3,336.4m versus Rs 2,607.6m; gross revenue was Rs 3,379.2m versus Rs 2,668.3m, up 27%.

• Standalone PBDIT rose 29% to Rs 645.4m; PBT reached Rs 435.2m versus Rs 284.8m, and PAT was Rs 331.9m versus Rs 227.8m.

• Cost of sales fell to 49% of sales from 54%; selling and operating expenses rose 37% to Rs 942.4m, or 28% of sales versus 26%.

• Consolidated sales and operating income increased to Rs 3,703.4m from Rs 2,859.6m; consolidated PAT was Rs 325.5m versus Rs 232.8m.

Outlook and guidance

• FY03/04 targets included 30% growth in unregulated markets, 4–5 DMF filings from Ankleshwar, and 1–2 ANDA filings; the company also planned five API DMFs.

• US revenue was expected from April 2005; plans called for 3 US ANDAs over 18 months and 10 more over three years.

• Complete pre-clinical studies and advance GRC 3015 toward Phase I early next year; GRC 1087 was expected to enter Phase I mid-year.

• Management targeted receivables of 75–90 days as export and API contribution increased.