India's Glenmark Pharma reports lower Q4 profit as domestic sales weaken
BENGALURU (Reuters) - India's Glenmark Pharmaceuticals Ltd reported a 12.3% decline in fourth-quarter profit on Friday, hurt by higher input costs and lower demand in its domestic drugs business.
Consolidated profit before exceptional items and tax fell to 3.09 billion rupees ($37.78 million) for the three months ended March 31, from 3.52 billion rupees a year earlier, the cetirizine maker said in a stock exchange filing.
For the quarter, the company had reported a one-time expense of 8 billion rupees in settlements of antitrust claims and consumer protection lawsuits in the United States.
Glenmark, which caters to the therapeutic areas such as diabetes, cardiovascular and oral contraceptives, reported a 11.5% rise in quarterly net sales.
It included a 6.4% decline in sales from its India drugs segment, which accounted for 31% of total sales, while sales in its North America business, which had a 24% contribution, grew 15.3%.
Input costs for the quarter rose 11% to 8.77 billion rupees from a year earlier.
Shares of the Mumbai-based company settled 3.3% higher at 624.30 rupees ahead of its results on Friday. Glenmark Pharma shares had climbed 9.6% in the March quarter, comfortably outperforming the Nifty Pharma index that fell 4.6%.
Glenmark Life Sciences Ltd, the company's unit that spun off in 2019 to focus on the active pharma ingredients business, reported last month a 48% rise in fourth-quarter profit, helped by growth in its core business of making APIs for drugs.
Glenmark's rivals Dr Reddy's Laboratories Ltd and Cipla Ltd earlier in the month had posted higher profits for their fourth quarter.
($1 = 82.4680 Indian rupees)
(Reporting by Rama Venkat in Bengaluru; Editing by Shweta Agarwal)