Glenmark Pharma sheds 7% on Rs 428-crore net loss in Q4

Shares of Glenmark Pharma plunged around 7 percent on March 22 after the company reported a net loss in the fourth quarter.

The drugmaker reported a net loss of Rs 428.30 crore for the quarter ended March, dragged down largely by an exceptional loss of Rs 799.7 crore on account of settlement of the litigation related to generic of Zetia in the US.

The company declared its financials after market hours on May 19. At 1.32pm on Monday, the shares of Glenmark Pharmaceuticals were trading at Rs 606.25 on the National Stock Exchange, down 2.89 percent from the previous close. The stock has slumped to an intraday low of Rs 581 in early trade.

Volumes in the counter were also high with 43 lakh shares changing hands on the exchanges, significantly higher than the one-month average of 20 lakh shares.

Follow our live blog for all the market action

Aside from the bottomline, the company’s revenue grew 11.7 percent on year to Rs 3,373.7 crore in the quarter, thanks to the double-digit growth across markets due to new launches and currency benefits.

“Our India business recorded double-digit growth in secondary sales. The North America business showed strong recovery, and the Europe and RoW (Rest of the World) markets did phenomenally well. We also continued to make headway in launching Ryaltris, our first global branded specialty product,” Glenn Saldanha, Chairman and Managing Director of Glenmark Pharmaceuticals, said in an exchange filing.

Along with the revenue, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) margin also expanded to 17.9 percent in January-March as against 15.4 percent in the same quarter a year ago.

The company also plans to continue this momentum in the coming fiscal with double-digit revenue growth and significant improvement in EBITDA margins.

Brokerage firm ICICI Securities noted that progress on the margins front remains rather slow as the EBITDA margin continues to hover around 17 percent and below the management’s aspiration of 20 percent.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.???????????????????