Q2FY24 results rolled out for Mankind Pharma. There is a strong Year-on-Year (YoY) increase in net profit by 30%, reaching Rs. 653.5 crore. Additionally, the total revenue rose by 13.6% to Rs. 3,076.51 crore.
As per the sources, the gains in chronic product sales and expanding exports have driven this growth in revenue and profit. However, there has also been a slowdown in domestic sales due to weakness in the acute segment.
Key Report Highlights (Q2FY24 vs Q1FY24) –
| Factor | Q2 – FY24 | Q1 – FY24 |
| Total Revenue | Rs. 2,708.10 crore | Rs. 2,578.62 crore |
| Selling/General/Admin Expenses | Rs. 571.96 crore | Rs. 552.91 crore |
| Depreciation/Amortization | Rs. 96.48 crore | Rs. 87.35 crore |
| Other Operating Expenses | Rs. 628.63 crore | Rs. 550.93 crore |
| Net Income Before Taxes | Rs. 640.99 crore | Rs. 624.47 crore |
| Net Income | Rs. 501.03 crore | Rs. 486.87 crore |
| Diluted EPS | 12.49 | 12.15 |
Mankind Pharma’s domestic revenue went up by 7% YoY to Rs. 2,529 crore. On the other hand, the company’s chronic segment contributed 34%, up from 32% last year. Even though there has been a slower beginning to the acute segment, a strong demand for chronic medicines, particularly in cardiac and anti-diabetic products acquired a double-digit growth.
The company’s exports also soared, supporting overall growth with a 159% YoY rise to Rs. 179 crore. This has been due to a high demand and strategic expansion efforts in international markets. This increase in exports and chronic sales altogether boosted Mankind Pharma’s revenue from operations.
As per the analysts from Kotak Institutional Equities (KIE), there is a temporary softness in the domestic market. This is mainly due to the delayed acute season. However, analysts stay optimistic about a gradual recovery, especially in Over-The-Counter (OTC) products. They have also forecasted a 14% CAGR in domestic sales for Mankind Pharma from FY2023 to FY2026. As for the exports, there is an expectation of sustained strength, anticipating about 29% EPS CAGR.
Complimenting this, Antique Stock Broking projects a 10% CAGR for Mankind’s Consumer Healthcare segment. They also estimate the overall Indian pharma market to grow at 10%. However, Mankind is expected to outpace this with a 13% CAGR over the next two years.
Mankind Pharma has also reported a 21% increase in EBITDA to Rs. 686 crore. This has acquired the firm a margin of 25%, with a YoY improvement of 80 basis points. Furthermore, there has been a 10% YoY growth in the company’s chronic medicine sales, which is higher than the overall Indian Pharma Market’s chronic growth rate of 9%. With this, chronic contributions now make up 34% of Mankind’s portfolio, reinforcing the focus on consistent, long-term growth in this high-demand area.
The company’s Vice Chairman & Managing Director, Rajeev Juneja has hinted that a strategic focus on diverse revenue streams has been paying off. He has also expressed confidence in surpassing industry growth rates in the near future.
With a 4.4% share in the Indian pharmaceutical market, Mankind Pharma ranks fourth overall. This highlights its significant position within the sector. Moving forward, market watchers are keen to observe the company’s progress in both domestic and international markets.
