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Glenmark Pharma Q4 earnings: Net profit likely to rise by 50%

Updated : May 29, 2019 08:55 AM IST

Glenmark Pharma will release its fourth-quarter financial results on Wednesday and the company is expected to report revenue growth of 15 percent. EBITDA is likely to rise 37.7 percent, with 17.2 percent growth in margins. Q4 profit is expected to rise 50 percent to over Rs 227 crore year on year.

The numbers in the quarters will be aided by a low base because in Q4 FY18 the revenue was down 7 percent, EBITDA was down 26 percent and profits were down 17 percent.

The company's US business will also help boost Q4 earnings. In Q3, the US business was up 16.3 percent on a low base. India also did well in Q3, it was up 15 percent.

The Street would keenly watch out for management commentary with regards out-licensing opportunities, disinvestment of API business and their innovation business that they spun off last quarter.

Q4FY19: Key Expectations

-US biz expected to grow around 24% (YoY)

-India and Rest of the World expected to grow around 13-15% (YoY)

-Watch for EU performance; Was up 43% in Q3; EU biz performance expected to peter out

-API biz was sluggish in Q3; Expected to grow this quarter

-Margins likely to expand due to a fall in other expenses

-R&D costs as a % of sales expected to increase by around 100 bps
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