Mankind Pharma PAT up 66% in Q1 to Rs 494 crore on revenue growth

Delhi-headquartered Mankind Pharma reported a 66 per cent year-on-year (YoY) increase in profit after tax (PAT) for the first quarter (Q1) of 2023-24 (FY24), reaching Rs 494 crore. This surge was supported by an 18 per cent YoY rise in revenue from operations, amounting to Rs 2,579 crore. The growth in revenue was driven by increased volume and strong traction in the chronic therapy segment.

On a sequential basis, the company witnessed a 68 per cent rise in PAT and a 26 per cent increase in revenue. However, the stock was down 1.87 per cent on the BSE.

During Q1FY24, the earnings before interest, tax, depreciation, and amortisation (Ebitda) stood at Rs 660 crore, resulting in an Ebitda margin of 25.6 per cent, which showed an improvement compared to the Rs 460 crore and 21.1 per cent Ebitda margin recorded in Q1 of 2022-23.

Rajeev Juneja, vice-chairman and managing director of Mankind Pharma, stated, “We have started the year on a healthy note, with strong double-digit growth in sales and profitability. The pharmaceutical (pharma) segment outperformed the Indian pharma market (IPM) by 1.5x, led by volume-led growth and the highest-ever chronic share.”

Juneja also highlighted a 43 per cent YoY increase in Ebitda as a positive outcome of the company’s previous initiatives to improve profitability.

As a company focused on the domestic market, Mankind achieved a 14 per cent YoY growth in the domestic business during Q1FY24 and maintained its No. 4 position with a market share of 4.4 per cent. The company’s volume growth was 4.3 per cent, outperforming the IPM’s 1.4 per cent, and its chronic drugs portfolio witnessed a 17 per cent YoY growth. Additionally, the consumer health care segment experienced an 8 per cent YoY and 36 per cent quarter-on-quarter growth.

Mankind’s export business expanded by 214 per cent YoY to Rs 160 crore, thanks to some one-off opportunities in the US.