Glenmark Pharma surges 6%, recovers previous day's losses

Shares of Glenmark Pharma made a strong recovery from the sharp losses in the previous session to surge 6 percent in the opening trade on February 15.

At 09.23 am, Glenmark Pharma was trading at Rs 842.75 on the NSE.

In the previous session, the drugmaker slumped over 4 percent after the company posted a net loss of Rs 330.8 crore for the December quarter.

The loss was on account of lower sales mainly because of a one‐time impact on the company's India business, along with a forex loss of Rs 16.2 crore, hyper inflationary impact of Rs 48 crore in Argentina and an exceptional item related to remediation costs of Rs 76.7 crore for manufacturing sites in India and the US.

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Glenmark Pharma also made changes to its distribution model in India through consolidation of stock points and rationalisation of channel inventories, which weighed on its revenues. Revenue dropped a little over 19 percent on year to Rs 2,506.7 crore, however, excluding the one-time impact, the topline grew 9 percent on year.

Higher raw material costs dragged the drugmaker's gross margins 750 basis points lower on year to 58.8 percent, while the EBITDA margin was at 17.9 percent.

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