Last Updated on November 2, 2023 by BFSLTeam BFSLTeam
On October 31, 2023: Mankind Pharma (BSE, NSE: MANKIND) announced its Q2 2023-24 financial results, clocking a 21% YoY growth in Profit After Tax for the quarter. Revenue from Operations is also up, making this a promising quarter for continued growth.
Table of Content
Key Highlights
Here are the prominent Q2 highlights of the Pharma leader:
- Q2 was good for the Pharma company, recording Revenue from Operations at ₹2,708 Cr. This was an increase of 12% YoY.
- The Domestic Revenue was up by 7% at ₹2,529 Cr, and the Export Revenue surged to ₹179 Cr, a rise of 159% YoY.
- EBITDA is up by 15% YoY and stands at ₹686 Cr, and the EBITDA Margin is at 25%.
- Profit After Tax is at ₹511 crore, an increase of 21% YoY with a margin of 19%.
- Diluted EPS is ₹12.5, and this is up by 19% YoY.
- The Cash Flow from Operations is at ₹481 Cr.
Additional Read: Q2 Results Dashboard
Management Commentary
The Co-Founder, MD, and Vice-Chairman, Rajeev Juneja, of Mankind Pharma, had some insights on the results and these are shared below:
- The performance of Q2 continues on its steady trajectory with Revenue/EBITDA and PAT showing growth by 12%/15% and 21% YoY, respectively.
- While the sector of Pharma has grown at par with IPM (versus the outperformance seen earlier), and this has been the result of the delayed acute season, there is an expectation of outperformance of IPM. This will likely take place due to the spike in growth.
- The strategic choices that the company has made in different aspects of the company’s business have served the company well with success in each quarter. The company has shown confidence in its endeavour to surpass industry growth in the coming year.
Additional Read: Mankind Pharma Share Price
Business Highlights
Here are some more highlights concerning the business operations in Q2:
- The Domestic Business gained a stable YoY growth of 7%.
- Mankind Pharma has attained the 4th rank in terms of market share in the sector, with a market share of 4.4%.
- The company has recorded 1.1x outperformance in chronic growth relative to the Indian Pharma Market (IPM). Further, the prescriber penetration has increased to 83% in Q2 FY 23-24 relative to 81% in Q2 FY 22-23.
- The segment of consumer healthcare experienced muted growth due to concentration on initiatives for channel inventory optimisation as well as the implementation of IT tools for the facilitation of stockist consolidation. Nonetheless, the company is taking aggressive steps to boost its branding across e-trade and e-commerce channels.
- On the export side of the business, the company has seen positivity with a growth of 159% YoY supported by particular one-off opportunities in the USA. The company also continues its export collaboration with emerging economies like Nepal, Kenya, Sri Lanka, and Uganda. Furthermore, with regard to export markets, the company is focusing on differentiated filings, including in-licencing for prominent markets.
Financial Results
Here are the financial results of Q2 in a nutshell (all figures in ₹ Cr, except where indicated in %):
| Metrics | Q2 FY 2023-24 | Q2 FY 2022-23 | YoY % | Q1 FY 2023-24 | QoQ % |
| Revenue from Operations | 2,708 | 2,425 | 11.6% | 2,579 | 5.0% |
| Gross Margins % | 69.5% | 66.8% | 270 bps | 68.2% | 130 bps |
| EBITDA | 686 | 594 | 15.4% | 660 | 4.0% |
| EBITDA Margin | 25.3% | 24.5% | 80 bps | 25.6% | (30 bps) |
| Profit After Tax | 511 | 422 | 21.0% | 494 | 3.4% |
About Mankind Pharma India Limited
Incorporated in 1991, but active business beginning in 1995, Mankind Pharma is an Indian healthcare product and pharmaceutical company that has its headquarters in Delhi. The company started with seed funding and has expanded substantially since its humble commencement. The therapeutic areas that the company facilitates through its products range from cardiovascular, gastrointestinal, dermal, and more. The company also makes antibiotics for a variety of disease conditions.
The company is reportedly among India’s leading pharmaceutical companies in terms of domestic sales and volumes. Some of the company’s consumer brands are the top-selling in their respective categories, such as Prega News (pregnancy test kits) and Unwanted -72 (emergency contraception medication). The company started with a focus on providing affordable drugs to the rural segments in India, offering significant discounted rates compared to their market counterparts. Now, besides its regular drugs for various diseases, the company specialises in contraceptive medication and antipsychotic medication for children. Through important mergers and acquisitions, the company has broadened its therapeutic base and now provides a range of world-class therapeutic drugs. In 2022, the company entered the segment of pet care. With the launch of its IPO in early 2023, the company is set to change trends in the Pharma sector with new products and innovations.
Source: https://www.mankindpharma.com/investors-relations/financials
