Mankind Pharma shares rise up to 5% on strong Q4, fundraising plan

Shares of Mankind Pharma, the seller of condom brand Manforce and pregnancy test kit Prega News, rallied nearly 5% in opening trade on Thursday, in sync with the broader market, a day after the pharma company released its earnings report. The board of the homegrown pharma company also approved raising of funds worth ₹7,500 crore via issuance of equity shares.

Snapping previous session losses, Mankind Pharma shares opened higher at ₹2,279.90, up 4% against the previous closing price of ₹2,190.65 on the BSE. In the early trade, the pharma stock rose as much as 4.75% to hit a high of ₹2,294.90 on the BSE.

At the time of reporting, Mankind Pharma shares were trading flat at ₹2,191.35, with a market capitalisation of ₹87,783 crore. At the current price level, Mankind Pharma shares trade 12% lower than its all-time high of ₹2,488.65 touched on April 23, 2024. The counter hit its lowest level of ₹1,240.75 on May 22, 2023.

The shares of Mankind Pharma, which made its market debut in May last year, has risen 61% in the last one year; 17% in six months; and 11% in the calendar year 2024. The stock has lost nearly 4% in a month, while it rose over 1% in a week.The pharma heavyweight has risen more than 100% against its initial public offering (IPO) price of ₹1,080 per share. 

In a post-market hour release on Wednesday, Mankind Pharma reported a 62.2% rise in fourth quarter consolidated net profit, driven by higher domestic sales and steady growth in the company's chronic drugs segment. The country's fourth-largest pharmaceutical company by domestic sales registered profit of ₹477 crore in Q4 FY24, as compared to ₹294 crore during the same period last year.

The revenue from operations grew 18.9% to ₹2,441 crore, as against ₹2,053crore in Q2 FY23. The domestic revenue was up 10% YoY at ₹2,174 crore, while exports revenue was at ₹267 crore, up 230% YoY. 

On the operational front, the EBITDA revenue grew 41.5% YoY to ₹594 crore, with a margin of 24.3%.

For the full financial year 2024, the company posted 48.2% YoY growth in profit at ₹1,942 crore, while revenue was up 18.1% to ₹10,335 crore as compared to the previous fiscal. The EBITDA rose 33.3% to ₹2,550 crore, with 280 bps improvement in margin at 24.7%. As of March 31, 2024, net cash balance stood at ₹3,260, with cash flow from operations increasing by 19% to ₹2,152 crore.

“This year, we have achieved a revenue milestone of ₹10,000 Cr. and added 3 more brand families worth over ₹100 Cr raising the total to 23. Our strong revenue growth of 18% with an EBITDA and PAT margin of 25% and 19% respectively is supported by an increase in chronic share to 36% and growth in modern trade of over 50%,” says Rajeev Juneja – Vice Chairman & Managing Director.

“We have further strengthened our chronic product portfolio with strategic in-house launches coupled with in-licensing of products like Symbicort – a globally renowned inhaler from Astra Zeneca. Multiple technology led business transformation projects implemented across functions to further enhance efficiency and productivity laying the foundation for our next phase of growth,” Juneja further says.

As per the company, domestic business witnessed a growth of 10% YoY in March quarter of FY24, supported by outperformance in chronic therapies (2.7x to Indian pharmaceutical market (IPM)), and recovery in Gynaecology (12.3% YoY vs 5.2% in IPM). Besides, prescriber penetration increased to 83.4% in Q4 FY24 versus 81.7% in Q4 FY23.

On the exports front, the business witnessed a strong growth of 230% YoY in Q4 FY24 and 29% QoQ, aided by one-off opportunities in the U.S. market. During the quarter, the company launched 4 new products in the U.S., taking the total launched products to 39 as on Mar’24.

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