Mankind Pharma Q4 Results: Profit Rises 62.3%, Beats Estimates

Mankind Pharma (India) Ltd. reported a rise in net profit for the fourth quarter of fiscal 2024, beating analysts' estimates.

The pharma company's net profit rose 62.3% year-on-year to Rs 477 crore in the January-March quarter, according to an exchange filing issued on Friday. This compares with the Rs 384-crore consensus estimate of analysts polled by Bloomberg.

Revenue from operations rose 19% to Rs 2,441 crore during the period, and was in line with estimates.

• Revenue up 19% to Rs 2,441 crore versus Rs 2,053 crore (Bloomberg estimate: Rs 2,438 crore).

• Ebitda rose 42.5% to Rs 591 crore versus Rs 415 crore (Bloomberg estimate: Rs 566 crore).

• Ebitda margin expanded 400 basis points to 24.2% versus 20.2% (Bloomberg estimate: 23.2%).

• Net profit up 62.3% to Rs 477 crore versus Rs 294 crore (Bloomberg estimate: Rs 384 crore).

Domestic Business

• Domestic business witnessed a growth of 10% YoY in Q4, supported by outperformance in chronic therapies (2.7 times to Indian pharmaceutical market), and recovery in gynaecology (12.3% YoY versus 5.2% in IPM).

• Mankind Pharma's secondary sales growth was at 7.9% versus 5.7% for IPM in the quarter, and 8.5% vs 7.6% for IPM in FY24.

• Domestic revenue increased by 13% to Rs 9,522 crore in FY24.  It maintained number four rank, with market share by value of 4.5% in Q4 FY24 vs 4.4% in the same quarter last year.

• Increased chronic share by 160 bps to 36% in FY24 vs 34% in FY23, demonstrating an outperformance of 1.6 times as compared with IPM.

• Outperformance of 1.8 times and 2.4 times to IPM in cardiac and anti-diabetic segment, respectively, leading to an all-time high market share for both the therapies in FY24.

• Prescriber penetration increased to 83.4% in Q4 vs 81.7% in the same quarter last year.

• Consumer healthcare segment showed recovery during the quarter, although it remained muted during the year.

• However, the company has seen healthy growth in secondary/tertiary sales in various brand categories, resulting in market share gain, driven by increasing presence in modern trade, e-commerce and Q-Commerce channels.

• It diversified into consumer healthcare by launching Nimulid under the pain management category; and the self-diagnostics kit for UTI, male infertility, dengue, and menopause under the brand umbrella “Rapid News” .

• Focus on further strengthening key brands like Manforce Gas O Fast and Prega News through premiumisation and line extensions.

• Exports business witnessed a growth of 230% YoY and 29% QoQ, aided by one-off opportunities in the US.

• During the quarter, they launched four new products in the US, taking the total launched products to 39, as on March 2024.

"This year, we have achieved a revenue milestone of Rs 10,000 crore and added three more brand families, worth over Rs 100 crore, raising the total to 23. Our strong revenue growth of 18%, with Ebitda and PAT margin of ~25% and ~19%, respectively, is supported by an increase in chronic share to 36% and growth in modern trade of over 50%", said Rajeev Juneja, vice chairman and managing director.

"We have further strengthened our chronic product portfolio, with strategic in-house launches, coupled with in-licensing of products like Symbicort—a globally renowned inhaler from Astra Zeneca."

They have multiple technology-led business transformation projects implemented across functions to further enhance efficiency and productivity, laying the foundation for the next phase of growth, he added.

The company has approved raising Rs 7,500 crore via equity shares and other eligible securities. The fundraising is to be done through qualified institutional placement or other permissible modes.

Shares of Mankind Pharma closed 2.42% lower at Rs 2,194.40 apiece, as compared with a 0.08% fall in the Nifty 50.