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Glenmark: Good quarter - Views on News from Equitymaster
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Glenmark: Good quarter
Dec 21, 2015

Glenmark has announced its 2QFY16 results. The company has reported 13.4% YoY growth in sales and 19.8% YoY increase in net profits. Here is our analysis of the results.

Performance summary

  • Topline grows by 13.4% YoY during the quarter. Barring Latin America, major geographies witness good growth.
  • Operating margins improved by 100 bps to 20% in 2QFY16, inspite of higher R&D expenses.
  • Net profits grow by 20% YoY in tandem with the growth in operating profits.

Financial performance: A snapshot

(Rs m) 2QFY15 2QFY16 Change 1HFY15 1HFY16 Change
Net sales 16,715 18,952 13.4% 31,494 35,376 12.3%
Other operating income 92 142 54.8% 183 270  
Expenditure 13,454 15,076 12.1% 24,901 28,033 12.6%
Operating profit (EBDITA) 3,353 4,017 19.8% 6,776 7,614 12.4%
EBDITA margin (%) 20.0% 21.0%   21.4% 21.4%  
Other income 10 8 -17.7% 44 62 39.3%
Interest (net) 510 426 -16.5% 991 845 -14.7%
Depreciation 651 693 6.5% 1,300 1,284 -1.2%
Profit before tax 2,202 2,906 32.0% 4,528 5,546 22.5%
Exceptional expense - -   - -  
Tax 552 928 68.2% 1,029 1,659 61.3%
Minority Interest (1) (0)   (0) (1)  
Profit after tax/(loss) 1,651 1,978 19.8% 3,500 3,888 11.1%
Net profit margin (%) 9.9% 10.4%   11.1% 11.0%  
No. of shares (m)         282.2  
Diluted earnings per share (Rs)         18.5  
Price to earnings ratio (x)*         49.7  

*based on trailing 12 months earnings

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