Mankind Pharma Q1 results: Profit rises 10% to ₹543 cr; revenue up 12%

Mankind Pharma, which sells condom brand Manforce and pregnancy test kit Prega News, has posted double-digit growth in its top and bottom line in the April-June quarter of the current fiscal, aided by spurt in volume. Post Q1 numbers, shares of Mankind Pharma ended 1.19% lower at ₹2,031.50, with a market capitalisation of ₹81,529 crore on the BSE.

The country’s fourth largest pharmaceutical company has posted a net profit of ₹543 crore for the first quarter ended June 2024, up 10% from ₹494 crore in Q1 FY24.

The revenue from operations of the homegrown pharma major rose 12% year-on-year (YoY) to ₹2,893 crore in Q1 FY25 compared with ₹2,579 crore in the same period last year.

On the operating front, EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) stood at ₹681 crore, up 4% YoY, while margins dropped by 188 basis points to 23.54%.

"We witnessed a steady revenue growth of 12.2% YoY with continued outperformance of 1.2x to India Pharma Market (IPM) driven by a strong recovery in volume," says Rajeev Juneja, VC & MD, Mankind Pharma.

During the quarter under review, the revenue from domestic business rose 9% YoY to ₹2,634 crore, constituting around 91% of the total revenue from operations. The secondary sales grew 10.5% versus 8.7% India Pharma Market (IPM) growth, supported by strong volume growth and out-performance in chronic therapies, the company says in the exchange filing.

As per the company, the domestic business growth during the quarter was partially impacted by a delayed season in anti-infectives and certain product withdrawals. The growth is expected to normalise from Q2 FY25, it adds.

In Q1 FY25, the exports of the company grew by 62% YoY to ₹259 crore, driven by increase in its base business, and new launches. During the quarter, the company launched 2 new products in the U.S., taking the total launched products to 41.

Mankind’s consumer healthcare business generated revenue of ₹206 crore in Q1 FY25, down 0.9% from ₹208 crore in the corresponding period last year. Sequentially, revenue grew 32% from ₹156 crore in Q4 FY24, supported by faster growth in modern trade, e-commerce and q-commerce channels. The company said that it has been consistently expanding from pregnancy care & sexual wellness to consumer wellness through the launch of Ova News, Nimulid, and Rapid News. It has witnessed good traction in Ova News, which has the potential to grow as big as Prega News.

The release notes that Mankind has become the second largest pharma company by volume with a market share of 6.1% in Q1 FY25 versus 5.9% in the year ago period. It has consistently maintained rank 1 over the last 7 years with a prescription share of 15.3% during the June quarter of FY25, with prescriber penetration increasing to 83.2% in Q1 FY25 from 82.7% in Q1 FY24.