Bengaluru: Indian active pharma ingredients maker Glenmark Life Sciences on Friday reported a narrow 1 per cent rise in quarterly profit, as growth in its key generic active pharma ingredients (API) segment offset high costs of raw materials.

The Mumbai-based drug maker‘s profit rose to 1.05 billion rupees ($12.86 million) in the three months ended Dec 31, from 1.04 billion rupees a year ago. The generic API segment, which contributes to almost 90 per cent of the company’s revenue, grew 1.8 per cent, benefiting from a capacity expansion at the company’s Dahej facility, as well as growth in its regulated markets business.

“India, Europe and Latin America were the main catalysts for growth whereas U.S. witnessed healthy recovery,” said chief executive officer Yasir Rawjee. The expansion for generic API products at the facility was completed with 240 KL capacity and was operational from this quarter.

Growth in this segment managed to offset the 12 per cent jump in input cost and 31 per cent decline in its contract development and manufacturing organization (CDMO) business. “CDMO business was sluggish, and we expect it to pick up strongly from the fourth quarter onwards,” said Rawjee.

Glenmark Life Sciences, which was spun off from Glenmark Pharmaceuticals in 2019 to focus on the API business, posted revenue from operations of 5.41 billion rupees, up 3.5 per cent from the previous year.

Glenmark Pharma will report its third quarter results on Feb 10. As of 1:26 a.m. IST, shares of the company are down 0.7 per cent after gaining 0.5 per cent after the results. They fell 33.4 per cent in 2022, while the Nifty pharma index dropped 11.43 per cent.