Mankind Pharma , India's fourth-largest pharmaceutical company, has announced its financial results for the first quarter, showcasing strong revenue growth but a decline in profits. The company's performance reflects its continued market expansion and challenges in maintaining profitability.

Revenue Surge

Mankind Pharma reported a consolidated revenue of ₹3,570.00 crore for Q1, marking a significant 24.5% increase compared to ₹2,868.00 crore in the same period last year. This robust growth was primarily driven by strong performance in both domestic and export markets.

Domestic Market Performance

The company's domestic revenue grew by 18.9% year-over-year, reaching ₹3,101.00 crore. This growth was supported by:

• Outperformance in chronic therapies, with 1.4x growth compared to the Indian Pharmaceutical Market (IPM)
• Strong growth in the consumer healthcare segment
• Consolidation of Bharat Serums and Vaccines Limited (BSV)

Mankind Pharma's market share in the domestic market increased from 4.8% in March to 4.9% in June, indicating continued market penetration.

Export Business

The export business showed remarkable growth, with revenue increasing by 81.1% year-over-year to ₹469.00 crore. This surge was attributed to the consolidation of BSV and growth in the base business.

Profit Decline

Despite the strong revenue growth, Mankind Pharma experienced a decline in profitability:

• Net profit decreased by 17.4% to ₹445.00 crore, compared to ₹538.00 crore in the same quarter of the previous year
• EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin stood at 23.8%, a slight improvement of 20 basis points year-over-year

Key Highlights

• Consumer healthcare revenue grew by 15% year-over-year to ₹237.00 crore
• The company maintained its #1 rank in prescriptions over the last eight years
• Chronic segment share increased to 37.1% of the total portfolio
• Mankind Pharma launched one product in the US market during Q1, bringing the total launched products to 45

Management Commentary

Mr. Rajeev Juneja, Vice Chairman & Managing Director of Mankind Pharma, stated, "Mankind's revenue grew by 24.5% with EBITDA margins at 23.8% in Q1 led by continued 1.4x outperformance in Chronic, strong growth in Consumer segment and BSV consolidation. Visible encouraging trends with 1.8x volume growth to IPM led by outperformance in Anti-infectives & Respiratory segment – apart from continued outperformance in Cardiology and Anti Diabetics."

Dividend Announcement

To mark the company's 30th year of operations, the Board of Directors has approved an interim dividend of ₹1.00 per share.

Conclusion

Mankind Pharma's Q1 results demonstrate the company's ability to drive revenue growth across its business segments. However, the decline in profitability suggests challenges in managing costs and maintaining margins. The company's focus on chronic therapies, consumer healthcare, and export markets continues to be key drivers of its growth strategy.

Mankind Pharma , a leading pharmaceutical company, is set to release its financial results for the April-June quarter. According to Bloomberg estimates, the company is expected to report a significant increase in revenue, while net profit may see a decline compared to the same period last year.

Revenue Projections

The consolidated revenue for the quarter is estimated to reach Rs 3,605.53 crore, marking a substantial increase from Rs 2,893.42 crore reported in the corresponding quarter of the previous year. This growth is primarily attributed to the recent acquisition of Bharat Serum Vaccine (BSV).

Bharat Serum Vaccine Contribution

The BSV acquisition is expected to play a crucial role in Mankind Pharma's revenue growth. Analysts project that BSV will contribute approximately Rs 470.00 crore to the company's top line in the quarter.

Profitability and Margins

Despite the anticipated revenue growth, Bloomberg estimates suggest that the net profit may decline to Rs 446.71 crore, compared to Rs 536.49 crore in the same quarter last year. However, the company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is projected to improve to Rs 900.11 crore from Rs 681.76 crore year-on-year.

The EBITDA margin is expected to expand to 25.00% from 23.60% in the previous year, indicating improved operational efficiency.

Analyst Perspectives

IIFL Capital maintains a positive outlook on Mankind Pharma, with a "Buy" rating and a target price of Rs 2,750. The brokerage firm anticipates a 10% organic growth for the company, excluding the impact of the BSV acquisition.

Axis Capital projects a 24% year-on-year growth in consolidated sales. They expect the EBITDA margins to reach 24.50%. The brokerage also estimates that Mankind Pharma's India business will grow by 8% on an ex-BSV basis.

Financial Performance Overview

As Mankind Pharma prepares to announce its quarterly results, investors and analysts will be closely watching the impact of the BSV acquisition on the company's overall performance and its ability to maintain profitability amidst expansion.