India's Glenmark Life Sciences posts Q2 profit rise on API boost

BENGALURU, Oct 20 (Reuters) - Indias Glenmark Life Sciences (GLEM.NS) reported an 11.1% rise in second-quarter profit on Friday, led by strong growth in its mainstay active pharmaceutical ingredients (API) business in domestic as well as U.S. and European markets.

The Mumbai-based drugmaker said its profit rose to 1.19 billion rupees ($14.3 million) for the quarter ended Sept. 30, from 1.07 billion rupees a year earlier.

The company, spun off from Glenmark Pharmaceuticals (GLEN.NS) in 2019 to focus on the API business, said its revenue from operations jumped nearly 17% to 5.95 billion rupees, with regulated markets including the U.S., Europe, Latin America and India contributing 80%.

However, a nearly 18% rise in expenses ate into the companys core profit margin, which contracted to 29% from 30.2% a year earlier.

Revenue from the API business, the companys biggest segment contributing 95% to revenue, grew 19.7% to 5.43 billion rupees.

Last month, parent Glenmark Pharma said it would sell a 75% stake in the Life Sciences unit to detergent maker Nirma and use the proceeds to repay debt.

The drugmaker, whose clients include Aurobindo Pharma (ARBN.NS) and Torrent Pharmaceuticals (TORP.NS), also exports APIs to markets including Japan and the Middle East.

The company develops APIs for drugs that help treat conditions such as diabetes and central nervous system diseases.

Shares of Glenmark Life Sciences advanced 0.6% after its results. They jumped 8.6% during the September-quarter, compared with a 12% rise in the Nifty Pharma index (.NIPHARM).

($1 = 83.0229 Indian rupees)