Mankind Pharma Q2 Results: Profit Jumps 29%, Beats Estimates

Mankind Pharma Ltd.'s consolidated net profit increased 29% in the quarter ended Sept. 30, beating analysts' estimates.

The company posted a net profit of Rs 658.88 crore in the July-September period, as compared to Rs 473 crore in the year-ago period, according to an exchange filing on Tuesday. Analysts tracked by Bloomberg had estimated a net profit of Rs 600 crore.

• Revenue up 13.6% at Rs 3,076.51 crore versus Rs 2,708.10 crore (Bloomberg estimate: Rs 3,050 crore).

• Ebitda up 25% at Rs 850.04 crore versus Rs 682.65 crore (Bloomberg estimate: Rs 781 crore).

• Margin at 27.6% versus 25.2% (Bloomberg estimate: 25.60%).

• Net profit up 29% at Rs 658.88 crore versus Rs 511.18 crore (Bloomberg estimate: Rs 600 crore).

Commenting on the quarterly results, Rajeev Juneja, managing director of Mankind Pharma, said there were multiple growth levers which supported the jump in revenue and operating profit during the September quarter.

These growth levers include resilient base business, fast growing specialty chronic segment, and high potential over-the-counter business, among others, he said. "Together, these levers will propel our growth journey ahead.“

Domestic Business

The company said its secondary sales grew by 8.6%, outpacing the Indian pharmaceutical market or IPM growth of 8%. This was driven by a strong volume growth of "3.4x the IPM" and chronic segment growth of "1.3x the IPM chronic" segment, it said.

Consumer Healthcare Business

The consumer healthcare business clocked 20% YoY growth, driven by steady performance in key brands such as Manforce, Gas-o-fast, and HealthOk, Mankind Pharma said.

This growth was further supported by rapid expansion in Modern Trade, e-commerce, and Q-Commerce channels, it added.

Exports

The revenue from exports grew 57% YoY, driven by an increase in the base business and supported by new product launches over the past 12 to 24 months.

During the quarter under review, the company launched one new product in the United States, bringing the total number of launched products to 42.

Shares of Mankind Pharma closed 0.62% lower at Rs 2,174.25 apiece on the NSE, compared to a 0.91% climb in the benchmark Nifty 50.

Eleven out of the 15 analysts tracking the company have a 'buy' rating on the stock, three recommend a 'hold' and one suggests a 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 7.1%.