Why did investors dump Marksans Pharma shares post Q4 results? Know here

Marksans Pharma share drops: Shares of pharmaceutical company Marksans Pharma dropped as much as 12.93 per cent to hit an intraday low of Rs 147.45 per share after announcing a weak set of March quarter (Q4FY24) results. 

Marksans Pharma’s net profit fell 4.5 per cent on a year-on-year (Y-o-Y) basis to Rs 78.3 crore in the March quarter of FY24, from Rs 82 crore in the March quarter of FY23. The uptick in revenue was driven by volume gains, new launches, addition of new customers, and increase in company’s share with existing customers.

The pharma company’s revenue, however, surged 15.2 per cent to Rs 560 crore in the March quarter of financial year 2024, as opposed to Rs 486 crore in the March quarter of financial year 2023. 

Earning before interest, taxes, depreciation and amortisation (Ebitda), also known as operating profit rose marginally (0.1 per cent) to Rs 109.6 crore on a year-on-year basis.

Marksans Pharma’s Ebitda margin, meanwhile, squeezed 290 basis points (bps) to 19.6 per cent in Q4FY24, from 22.5 per cent in Q4FY23.

The company’s Q4FY24 earnings per share (EPS) stood at Rs 1.73.

For FY24, Marksans Pharma’s operating revenue stood at Rs 2,177.4 crore, up 17.6 per cent Y-o-Y; Gross profit was Rs 1,139.3 crore, up 22.4 per cent Y-o-Y with a gross margin of 52.3 per cent. EPS grew 8 per cent Y-o-Y to Rs 6.92

The board of directors have recommended a final dividend of Rs 0.6 per equity share.

Mark Saldanha, managing director of Marksans Pharma said, “We are delighted to report a strong performance in FY24 in terms of both revenue and profitability. This year we have not only met but exceeded our revenue target of Rs 2,000 crore. We remain confident in delivering sustained long-term value for our shareholders, as we position ourselves strongly in terms of infrastructure, product mix and long-term customer relationships.” 

Set up in 1992, Marksans Pharma is a Mumbai-based pharmaceutical company. It develops research and development (R&D) capabilities including dossier development, chemical synthesis, process optimisation, formulation development, analytical development, and conducting stability studies

The market capitalisation of Marksans Pharma is Rs 6,937.94 crore, according to Bombay Stock Exchange. 

At 1:12 PM, shares of Marksans Pharma were trading 9.51 per cent lower at Rs 153.25 per share. By comparison, S&P BSE Sensex was trading 0.51 per cent lower at 74,121.78 levels.