Mankind Pharma shares rise 2% on robust Q4 results

Shares of Mankind Pharma, which made its market debut early this month, gained nearly 2% in opening trade on Wednesday after the country’s fourth largest pharmaceutical Company released its March quarter earnings report. The maker of Manforce condoms and pregnancy test kit Prega News has given flat returns since its listing on the stock exchanges on May 9.

Paring previous session losses, Mankind Pharma shares opened at ₹1,379.95, up 1.7% against the previous closing price of ₹1,356.65 on the BSE. On Tuesday, the pharma heavyweight closed 0.8% lower.

The stock currently trades 28% higher than its issue price of ₹1,080 per share. It hit a record high of ₹1,439 on May 12 and an all-time low of ₹1,240.75 on May 22.

For the January-March quarter of 2023, Delhi-based Mankind Pharma reported 52% growth in profit after tax (PAT) at ₹294 crore compared with ₹193 crore in the corresponding quarter of the previous fiscal year. The revenue from operations rose 19% to ₹2,053 crore from ₹1,726 crore in Q4FY22.

On the operational front, the EBITDA stood at ₹419 crore during the quarter under review, up by 45% from ₹290 crore during the March 2022 quarter. 

For the complete financial year 2023, the net profit stood at ₹1,310 crore, down by 10% from ₹1,453 crore in FY22. The revenue from operations was at ₹8,749 crore, up 12% YoY from ₹7,782 crore in the last fiscal, with the domestic market contributing to 97% of its total revenue. The EBITDA was at ₹1,913 crore with a margin of 21.9%.

Commenting on Q4 results, Rajeev Juneja, Vice Chairman & Managing Director, said, “The company maintained its strong growth trajectory during the year. Our domestic business continued to outperform the IPM in FY23, led by growth in chronic segments whose share has increased to 34% from 33% in FY22. Our consumer healthcare business has maintained its double-digit growth with dominant brand leadership in its categories.”

“Our focus is on increasing value of prescription within existing class II-IV and rural markets and increasing penetration in Metros through higher chronic presence. We also plan to leverage our brand dominance to grow our consumer healthcare business, going ahead,” he added.

Established in 1991, Mankind Pharma is one of the largest pharmaceutical company in India, which focuses on the domestic market with its Pan India presence. In its recently concluded IPO, the company raised ₹4,326 crore in the country’s biggest public offer so far this year, which received an overwhelming response from qualified institutional investors (QIBs) and non-institutional investors (NIIs), but failed to excite retail investors.

Ahead of the IPO, the homegrown pharma company raised ₹1,297.90 crore by allotting 1,20,17,652 equity shares at ₹1,080 per share to 77 anchor investors (including 16 domestic mutual funds through a total of 41 schemes). 

The company, which manufactures emergency contraceptive brand Unwanted-72, Gas-O-Fast ayurvedic antacids, and acne-treating medicine AcneStar, is a net debt-free company, which generated profit after tax (PAT) of ₹1,030.5 crore in 2019-20, ₹1,253.9 crore in 2020-21, and ₹1,419.2 crore in 2021-22. For the financial years 2020, 2021 and 2022, the company's revenue from operations in India amounted to ₹5,788.8 crore, ₹6,028 crore and ₹7,594.7 crore, respectively, representing 98.70%, 97.01% and 97.60%, respectively, of its total revenue from operations. After India, its major markets are the U.S., Bangladesh, Sri Lanka and Nepal. 

(DISCLAIMER: The views and opinions expressed by investment experts on fortuneindia.com are either their own or of their organisations, but not necessarily that of fortuneindia.com and its editorial team. Readers are advised to consult certified experts before taking investment decisions.)