MOSL: ANNUAL REPORT THREADBARE (ART) | GLENMARK FY17-Earnings to cash flow conversion remains weak
​ANNUAL REPORT THREADBARE (ART) | GLENMARK FY17: Earnings to cash flow conversion remains weak
Glenmark’s FY17 annual report highlights improved operating performance, with EBITDA rising 42% to INR20.4b on the launch of gZetia under six-month exclusivity. However, earnings-to-cash-flow conversion remains weak at 23% due to (i) increase in working capital requirements, primarily inventories, which increased by INR6.1b to INR21.4b (23% of revenue), (ii) higher cash taxes paid (at INR7b) v/s tax expense of INR3.8b, and (iii) continued MTM losses on cash of INR2.9b (26% of PAT). High capex at INR7.3b leads to adjusted FCF post interest remaining negative at INR5.5b. This has led to increase in gross debt to INR47.2b (FY16: INR39.9b). Intangible assets stood at INR10b (22% of net worth; despite a write-off of INR0.8b), while deferred tax assets (DTA) stood at INR15.5b (35% of NW).
Zetia launch results in improved operating performance: GNP’s revenue grew 20% to INR91.9b, driven by 53% growth in US business (due to gZetia launch); LATAM de-grew 31% on currency depreciation and discontinuation of sales in Venezuela. EBITDA grew 42% to INR22.2b and PAT grew 49% to INR11.1b.
Glenmark Pharmaceuticals is engaged in the discovery of new molecules, both NCEs (new chemical entity) and NBEs (new biological entity), with seven molecules in various stages of clinical development & pre-clinical development. Co.'s Drug Discovery business primarily focuses in the areas of inflammation, metabolic disorders and pain. Co.'s Formulations business focuses on therapeutic areas such as dermatology, anti-infectives, respiratory, cardiac, diabetes, gynecology, CNS, and oncology. Co.'s Glenmark Generics Ltd. business focuses on developing, manufacturing, selling and the distribution of generics through wholesalers, retailers and pharmacy chains.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
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