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BW Businessworld

Glenmark Pharma Q3 Net Nearly Halves

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Drugmaker Glenmark Pharmaceuticals Ltd.'s quarterly profit nearly halved on heavy foreign exchange losses from overseas borrowings despite robust sales growth.

The company, which sells generic drugs and develops new molecules, said consolidated net profit fell to Rs 46.12 crore in the fiscal third quarter ended December 31 from Rs 86.53 crore a year earlier.

Analysts expected the company to post a net profit of Rs 117 crore, according to Thomson Reuters StarMine data.

Glenmark's sales jumped 37.7 per cent in October-December to Rs 1031 crore from last year, it said.

The drugmaker reported mark-to-market losses of Rs 102 crore incurred on dollar denominated loans, it said.

"Despite a challenging global environment, all our operating regions have registered double digit growth," Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals, said.

"The performance highlights the strength of our base business while we continue to make progress on our drug discovery pipeline."

Glenmark said that its US generic drugs business, a key performance indicator for Indian drugmakers, grew 56.3 per cent in December quarter to Rs 319 crore.

Revenue from Europe jumped 48.35 per cent to Rs 66.41 crore, while India sales grew 11.3 per cent to Rs 255 crore.

Shares in Glenmark Pharmaceuticals, which have lost 8 per cent in value in last six months, closed at 311.80 rupees on Monday, down 1 per cent in a weak Mumbai market.