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Glenmark: Emerging markets disappoint - Views on News from Equitymaster
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Glenmark: Emerging markets disappoint
Feb 5, 2016

Glenmark has announced its 3QFY16 results. The company has reported 4.5% YoY growth in sales and 48.3% YoY increase in net profits. Here is our analysis of the results.

Performance summary

  • Topline grows by 4.3% YoY during the quarter. The growth was impacted by challenges in the emerging markets.
  • Operating margins improved by 5.2% to 20.8% in 3QFY16, due to better product mix, and higher forex loss in 3QFY15.
  • Consequently, net profits grew by a robust 48.3% YoY.

Standalone financial performance

(Rs m) 3QFY15 3QFY16 Change 9MFY15 9MFY16 Change
Net sales 16,921 17,642 4.3% 48,415 53,018 9.5%
Other operating income 2 140 52.5% 275 410
Expenditure 14,356 14,086 -1.9% 39,257 42,117 7.3%
Operating profit (EBDITA) 2,657 3,696 39.1% 9,432 11,311 19.9%
EBDITA margin (%) 15.6% 20.8%   19.4% 21.2%  
Other income 21.3 21.4 0.6% 66 83 26.7%
Interest (net) 513 468 -8.7% 1,505 1,314 -12.7%
Depreciation 655 626 -4.4% 1,956 1,910 -2.3%
Profit before tax 1,510 2,623 73.7% 6,037 8,170 35.3%
Tax 363 921 154.1% 1,391 2,580 85.5%
Minority Interest (0) (0.5)   (0) (1)  
Profit after tax/(loss) 1,148 1,703 48.3% 4,647 5,591 20.3%
Net profit margin (%) 6.8% 9.7%   9.6% 10.5%  
No. of shares (m)         282.2  
Diluted earnings per share (Rs)         20.3  
Price to earnings ratio (x)*         35.8  

*Based on trailing 12-months earnings

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