Glenmark Pharmaceuticals (GLENMARK) Q4 03/04 earnings summary

Executive summary

• FY 2003-04 turnover rose 14.09% YoY to Rs 3,806.61 million; PAT increased 26.56% to Rs 420.04 million.

• Export growth, API expansion and R&D investment advanced a strategy to diversify beyond domestic formulations and build a global research-led business.

Financial highlights

• PBT was Rs 525.42 million versus Rs 435.22 million; PBIDT was Rs 734.89 million versus Rs 645.43 million.

• Standalone PAT was Rs 420.04 million versus Rs 331.90 million; consolidated PAT was Rs 413.61 million versus Rs 325.51 million.

• Operating cash flow increased to Rs 238.36 million from Rs 93.26 million; cash and equivalents ended FY at Rs 67.69 million.

• R&D revenue expenditure rose 68.45% to Rs 248.07 million, reported as 6.52% of turnover, reflecting higher staffing and research activity.

Outlook and guidance

• FY 2004-05 objectives: revenue growth of 35% and net profit growth of 80% over FY 2003-04.

• API non-captive revenue target: 100% growth; semi-regulated market revenue target: over 100% growth, including Latin America.

• Domestic formulations target: revenue growth above 5%, with higher volume and profit growth; priorities include new products, wider prescription reach and brand development.

• R&D plans included Phase I trials for the asthma lead in July-August 2004 and a diabetes candidate later in FY 2004-05; 10-12 ANDAs and 8-10 DMFs were targeted.

• Goa facility commercial operations and USFDA approval, plus USFDA approval for Ankleshwar, were FY 2004-05 objectives.