Last Updated on February 1, 2024 by BFSLTeam BFSLTeam
On January 31, 2024, Mankind Pharma Limited (BSE, NSE: MANKIND) announced its Q3 2023-24 results, reporting a 55% YoY growth in PAT and a 118% YoY jump in export Revenue.
Table of Content
Main Financial Result Takeaways
Delivering resilient growth, India’s fourth largest Pharma major displayed the following in terms of financial metrics in Q3 FY24:
- The Company’s Revenue from Operations stood at ₹2,607 Cr, a 25% YoY growth.
- The Company’s Domestic revenue was at ₹2,400 Cr, a 20% YoY growth.
- The Export revenue of the Company was at ₹207 Cr, a 118% YoY growth.
- The EBITDA stood at ₹611 Cr, a 39% YoY growth with a margin of 23.4% (up by 240 bps on a YoY basis).
- The PAT or Profit After Tax was at ₹460 Cr, a 55% YoY growth with a margin of 17.6% (up by 350 bps YoY).
- The Company recorded a Diluted EPS of ₹11.3, a 59%, YoY growth (FV Re.1).
Additional Read: Q3 Results Dashboard
Business Highlights
In its Q3 report, the Company had aspects of its business operations to share:
- Domestic Business
- The Company’s Domestic Business had healthy growth of 20% YoY during Q3 FY24 mainly driven by out-performance in Chronic therapies (1.5x to IPM), recovery in anti-infectives (13.8% YoY versus 9.5% in IPM), and boosted even more by robust growth in hospital sales plus modern trade.
- Mankind Pharma’s secondary sales growth stood at ~9% versus 8.3% for IPM in the quarter.
- The Company maintained its #4 rank with a market share of 4.5% in Q3 FY24 relative to 4.5% in Q3 FY23.
- The Company is ranked #2 in CVM with a market share of 6.6% in Q3 FY24 relative to 6.5% in Q3 FY23.
- The Company is ranked #1 in the prescription drug area with more than 15.3% of the market share in Q3 FY24.
- Consumer Healthcare Business
- The Company’s Consumer Healthcare segment revenue decreased in Q3, due to initiatives taken in the last quarter (Q2) toward the optimisation of channel inventory and the implementation of IT tools for the facilitation of stockist consolidation.
- The Company continues to witness robust growth in secondary and tertiary sales in its major brands, boosting its market share even further.
- There is a focus on increasing the rural penetration in key brands like Gas-o-Fast® and Prega News®.
- Export Business
- The Company’s Export business witnessed a 118% growth on a YoY basis in Q3 FY24, supported by particular one-off opportunities in the US.
The Management’s Take on Q3 Results
The Vice Chairman and MD of Mankind Pharma Limited had some key aspects of Q3 results to share and these are highlighted below:
- The Company has declared resilient Q3 results with Domestic Growth of 20% YoY, driven by strong growth in recovery in anti-infectives, Chronic therapies, and strong growth in modern trade and hospital sales.
- The Company’s top 5 therapeutics by sales have totally outperformed the IPM by 1.5x. Mankind Pharma has increased its market share in 18 out of the top 20 brands on both a QoQ and a YoY basis.
- Consequently, the Company’s EBITDA growth is robust, at 39% YoY and PAT growth of 55% YoY is solid too.
- The Company continues to focus on improving its cash flow from operations and optimising its working capital cycle.
Financial Results at a Glance
Here is a glimpse of the financial results of Q3 (figures in ₹ Cr as reported by the Company, except where specified otherwise):
| Metrics | Q3 FY 2023-24 | Q3 FY 2022-23 | YoY % | Q2 FY 2023-24 | QoQ % |
| Revenue from Operations | 2,607 | 2,091 | 24.7% | 2,708 | (3.7%) |
| Gross Margins | 68.3% | 67.6% | 70 bps | 69.5% | (120 bps) |
| EBITDA | 611 | 440 | 39.1% | 686 | (10.9%) |
| EBITDA Margin | 23.4% | 21.0% | 240 bps | 25.3% | (190 bps) |
| PAT | 460 | 296 | 55.5% | 511 | (10.0%) |
| EPS (diluted) in ₹ | 11.3 | 7.1 | 59.4% | 12.5 | (9.4%) |
Additional Check: Mankind Pharma Share Price
Q3 FY24 Result Summary
Mankind Pharma Limited is one of India’s largest pharmaceutical companies today, focusing on the domestic market with its presence spread far and wide across India. The Company operates at the crossroads of the Indian pharmaceutical formulations sector and the consumer healthcare sector. The main aim of the Company is to provide quality products to Indian consumers, at affordable prices. A leader in the business of Domestic pharma, the Company produces therapeutics to treat diverse medical conditions in the field of chronic disease. It manufactures cardiovascular treatments, anti-infectives, gastrointestinal therapies, antidiabetic therapies, neuro/CNS, respiratory drugs, and VMN, among others. With each quarter, the Company hopes to gain a larger market share in Chronic therapies. The Company also has key operations in the business of emergency contraceptives, pregnancy detection, vitamins, and antacids.
With 28 manufacturing plants in India and a diverse range of dosage forms, Mankind Pharma has managed to create another fruitful quarter with its Q3 FY24 results. Increasing its R&D facilities led by over 600 scientists, the Company has had a good run in its Export business. YoY PAT and EBITDA are high for Q3, as the Company has been successful in its penetration of different markets within the country, such as smaller towns and Tier 2 cities. On the back of successful organic growth, Mankind Pharma is the youngest among the top five Indian Pharma companies today.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
For Research Disclaimers Click Here: https://bit.ly/3Tcsfuc
Source: Mankind Pharma Investor Presentation on BSE
