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Glenmark Life dented by low sales at Glenmark Pharma as COVID ebbs, outlook bright

Glenmark Life dented by low sales at Glenmark Pharma as COVID ebbs, outlook bright

Glenmark Life dented by low sales at Glenmark Pharma as COVID ebbs, outlook bright
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By Sonal Bhutra   | Sonia Shenoy  Oct 25, 2022 6:35:56 PM IST (Updated)

Shares of Glenmark Life Sciences Ltd ended at Rs 421.30, up by Rs 0.15, or 0.036 percent, on the BSE. The company is headed for significant growth, backed by the robust external business from Japan and Latin American countries, Yasir Rawjee, MD and CEO of Glenmark Life Sciences, told CNBC-TV18.

Glenmark Life Sciences sales for the July-September quarter declined  9.34 percent to Rs 509.30 crore against Rs 561.75 crore in the corresponding period a year ago.

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Yasir Rawjee, MD and CEO of Glenmark Life Sciences, told CNBC-TV18 that the dip in sales at Glenmark Pharma as the pandemic eased out impacted the business .
“Sales from Glenmark Pharma were like 27-28 percent of our overall revenue. But last year, it was 41 percent. So that should give you a sense in terms of how much that has come down. And it was largely on account of the COVID drug. For Glenmark Pharma’s business, we should be hovering around the 30-32 percent mark this year, but then over time, it's only going to degrow,” said Rawjee.
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He added that overall, the company is headed for significant growth, backed by the robust external business from Japan and Latin American countries, besides India.
The net profit for the quarter declined 7.22 percent to Rs 106.8 crore  compared to Rs 115.2 crore in the corresponding period a year ago.
On growth prospects in FY23, Rawjee said he expects mid- to high-level single-digit growth for the year on account of the high base effect.
“This year might be a bit of a challenge because we have that high base effect. And the demand, apart from the COVID drugs, needs to pick up. And I believe it will pick up from whatever I can see now. So it is going to be pretty good but that should take us into the mid- to high single-digit growth this year,” he added.
On margin bases, Rawjee expects the company to continue holding a margin of 28-30 percent for the year.
“A lot of cost efficiency that we've been able to drive internally on energy, on solvent usage, and better cost improved processes, has all come handy for us to keep the margin. So I keep saying even if the worst is not over, our margins are still going to remain intact at 28-30 percent,” he added.
Shares of Glenmark Life Sciences Ltd ended at Rs 421.30, up by Rs 0.15, or 0.036 percent on the BSE.
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