V.S. Mani, Executive Director & Global Chief Finance Officer, Glenmark Pharmaceuticals shared his views on their market growth, the Monroe facility and debt position of the drug maker, on ET Now. Glenmark’s India business has been doing very well and this quarter also India led the growth for GNP.
For the current quarter Glenmark had done sales of Rs 1091 Cr which grew at 1.7% YoY , improving their ranking in respiratory and cardiac segments. During the quarter, 9 new products were launched, Mani said, “Today we have a number of products to meet the requirements of type 2 diabetes patients”.
Last few quarters have been a mixed bag for GNP with healthy revenue growth across most segments barring US which de-grew in the current quarter. Apart from the Indian market, Glenmark’s European markets are also doing very well, where it grew in excess of 11% during the quarter.
Mani believes that despite challenging times with supply and logistic disruptions, input cost increases, currency volatility they have maintained their margin profile at 19% and would like to sustain it.
Commenting on the resolution of compliance at the Monroe facility, which is very critical for the US business, Mani said, ‘We are hoping that Q4 of this year we should be in a position to start manufacturing the much-needed injectable segments’.
The net debt of the company had increased 40% between FY13-21 despite good cash flows and healthy OCF over the years. Mani said, “We have grown double digit over the years and we have been investing a lot in innovation which means we had to ensure we have enough resources to grow.”
In the Q2 it has gone up to Rs 180 Cr on account of the currency move. In the last few quarters we also saw challenges from supply chain disruption and therefore the requirements of additional working capital, so therefore it seems higher. Last year though we did manage to lower the debt by Rs 1300 Cr and the endeavor will always be to lower the debt, he added.
