Glenmark Q4 profit plunges 75% to ₹10 crore on one-time legal charges
Total income has increased 5% to Rs1,776 crore in the March quarter compared with Rs1,691.4 crore in the comparable quarter last year
Mumbai: Glenmark Pharmaceuticals Ltd reported a 75% drop in its consolidated net profit due to one-time legal charges.
Net profit for the quarter fell to ₹ 10.6 crore for the quarter ended 31 March compared with ₹ 43 crore in the same period last year.
Total income has increased 5% to ₹ 1,776 crore in the January-March quarter compared with ₹ 1,691.4 crore in the comparable quarter last year.
In a statement to the exchanges, Glenmark said that the net profit was not comparable due to an exceptional item of ₹ 187 crore in the fourth quarter, which related to a settlement claim including legal expenses arrived at with the State of Texas by Glenmark Generics Inc.
On 8 April, Glenmark Generics had agreed to pay a fine of $25 million over a period of four years to settle a pricing investigation initiated by the Texas attorney general under the Texas Medicaid Fraud Prevention Act (TMFPA). The settlement has been disclosed by the company in a notice to the exchanges.
The group has posted a net profit of ₹ 475 crore for the year ended 31 March as against ₹ 542 crore the previous year. Total income increased to ₹ 6,652 crore during the year compared with ₹ 6,017 crore during the previous fiscal.
“We continue to record good growth in our India, LatAm and Europe businesses. Currency devaluation and subdued business environment persisted to impact our rest of the world, especially Russian operations," said Glenn Saldanha, chairman and managing director, Glenmark Pharmaceuticals.
The company’s India business grew 15% during the fourth quarter and reported a revenue of ₹ 441 crore, while revenues from the European business were up 26% to ₹ 243 crore for the quarter.
Shares of Glenmark Pharmaceuticals closed 2.32% higher at ₹ 877.15 apiece on BSE, while the Sensex rose 1.17% to 27,828.44 points.
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