India`s Glenmark Life Sciences posts 25% rise in Q1 profit on API strength
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India's Glenmark Life Sciences reported a near-25% rise in its first-quarter profit on Friday, led by robust growth of its mainstay active pharmaceutical ingredients (API) business in domestic as well as U.S. and European markets.
The Mumbai-based drug maker said profit stood at 1.35 billion rupees ($16.5 million) for the quarter ended June 30, compared with 1.09 billion rupees a year earlier.
The company, spun off from Glenmark Pharmaceuticals in 2019 to focus on the API business, said total revenue from operations climbed 18% to 5.87 billion rupees during the quarter, with regulated markets including the U.S., Europe and India contributing 78%.
Margins on earnings before interest, taxes, depreciation and amortization (EBITDA) rose to 33.7% from 31.9% a year earlier.
Revenue from the API business, the company's biggest segment contributing 92% to revenue, grew 13.3% to 5.04 billion rupees.
The drugmaker, whose clients include Aurobindo Pharma and Torrent Pharmaceuticals, also exports APIs to markets including Japan, Latin America and the Middle East.
APIs are key biologically active elements in a drug that are responsible for delivering desired health effects. The company develops APIs for drugs that help treat conditions such as diabetes as well as cardiovascular and central nervous system diseases.
Shares of Glenmark Life Sciences rose as much as 2.7% after its results before paring gains to trade at 632 rupees per share. They rose nearly 45% during the first-quarter, outperforming the Nifty Pharma index, which rose nearly 15%.
