Mankind Pharma reported a 29% year-on-year increase in its consolidated net profits for the second quarter of this fiscal, reaching ₹658.88 crore, up from ₹473 crore in the same period last year. The company reported a stronger-than-expected profit, driven by high demand for its drugs for chronic conditions such as diabetes and cardiovascular diseases.
“We are pleased to report steady revenue growth of 13.6% YoY with strong EBITDA margins of 27.7%, driven by recovery in volume, continued outperformance in chronic segment and operating leverage,” Rajeev Juneja, Vice chairman & managing director of Mankind Pharma said in an official statement.
“Multiple growth levers – resilient base business, fast growing specialty chronic segment, high potential OTC business, and high-entry barrier super specialty portfolio of BSV. Together, these levers will propel our growth journey ahead,” Juneja added.
The pharmaceutical major reported a significant increase in total income for this quarter, growing by 15% to ₹3,185.94 crore, compared to ₹2,768.08 crore in the same period last year. Total expenses also rose by 10% to ₹2,339.19 crore, primarily due to higher stock-in-trade purchases and employee benefits, despite a slight decrease in raw material costs.
The company achieved an EBITDA margin of 27.7%. The robust export growth was attributed to the expansion of the base business and new product launches over the past 12-24 months, including one new product launched in the US during the quarter, bringing the total launched products to 42.
Revenue from operations reached ₹3,077 crore, up 14% year-on-year, with domestic revenue at ₹2,796 crore, reflecting an 11% increase, while exports soared by 57% to ₹281 crore. This growth in domestic revenue was largely fuelled by a 20.4% increase in the consumer healthcare segment, which includes brands like Manforce, Gas-o-fast, and HealthOk, totalling ₹232 crore compared to ₹193 crore last year. Mankind Pharma's revenue from chronic illness drugs grew to 35% of total revenue. Additionally, prescriber penetration improved to 83.5% in Q2 FY25.
Shares of Mankind Pharma closed at ₹2,714.25 on the NSE on Tuesday, down 0.62%, while the benchmark Nifty 50 saw a gain of 0.91%.
The company has completed its acquisition of Bharat Serums and Vaccines (BSV) for ₹13,768 crore as of October 23. Additionally, Vijaya Sampath today has been appointed as an Independent Director on the newly acquired company’s Board.
"Our acquisition of BSV aligns with our vision to expand into high-barrier markets, particularly in the gynaecology segment and critical care products, while enhancing our R&D capabilities," said Juneja.
The company plans to increase its borrowing capacity by creating mortgages on its movable and immovable properties, setting the new limit at either ₹15,000 crore or the total of its paid-up share capital, free reserves, and securities premium, whichever is higher. This proposal requires shareholder approval.
