Glenmark Pharmaceuticals (GLENMARK) Q4 99/00 earnings summary

Executive summary

• FY1999-2000 sales rose 39.20% YoY to Rs.13,802.87 lakh; profit before tax reached Rs.2,866.96 lakh, supported by new launches, domestic growth and higher other income.

• The year combined an IPO and listing, expansion of R&D and manufacturing projects, a brand acquisition and a distribution redesign, positioning the business for export and product growth.

Financial highlights

• Sales were Rs.13,802.87 lakh versus Rs.9,916.06 lakh; profit before depreciation was Rs.2,977.92 lakh versus Rs.1,708.98 lakh.

• Profit before tax was Rs.2,866.96 lakh versus Rs.1,643.33 lakh; profit after tax was Rs.2,196.46 lakh versus Rs.1,277.40 lakh.

• Total income was Rs.15,347.94 lakh, including Rs.1,545.07 lakh of other income; net sales in the financial highlights series, including the export subsidiary, were Rs.16,614.88 lakh.

• Interim dividend of 80% (Rs.8 per Rs.10 share) was paid, comprising 40% regular and 40% special dividend; proposed as final dividend.

Outlook and guidance

• Strategic goal: leadership in the Indian pharmaceutical industry by 2005; management indicated that achieving its growth ambition would require annual growth of around 35%.

• Export business was expected to jump in 2000-01, with export contribution projected to rise steadily over the following years; new markets entered during FY2000 were expected to contribute in 2000-01.

• Brands acquired from Lyka Labs were expected to contribute over Rs.150 million in sales during the eight months of 2000-01.

• Product pipeline priorities included sustained/controlled-release formats, antibiotics, calcium supplements, topical steroids, antihistamines and new drug discovery in metabolic disorders, pain and inflammation.