Shares of Mankind Pharma dropped nearly 6 percent on January 24 following a sharp decline in its October-December net profit. The company reported a 16 percent year-on-year fall in profit to Rs 385 crore for Q3 FY25, impacted by increased expenses and the acquisition of Bharat Serums and Vaccines (BSV).
At 9:51 AM, the company’s stock was trading at Rs 2,515.25 on the NSE.
Revenue at Mankind Pharma jumped 24% YoY to ₹3,230 crore in Q3 on account of market share gains in the domestic market. Growth has been supported by BSV acquisition and leadership in gynecology therapy. EBITDA margin improved by 240 bps to 25.8%, supported by a better product mix.
The drugmaker’s overall expenses jumped 33 percent year-on-year. Finance cost jumped to Rs 221 crore from Rs 9.2 crore in the previous year, while employee cost jumped 25 percent. These, along with the $1.6 billion acquisition of BSV that began to reflect in October, dented the company’s bottom line.
“Healthy revenue growth and improved EBITDA margin have been achieved through outperformance in chronic, strong recovery in the over-the-counter segment, and consolidation of BSV,” Rajeev Juneja, Vice Chairman and Managing Director of Mankind Pharma, said in an exchange filing.
The strong growth for Indian pharmaceutical companies, including Mankind Pharma, is continuing with strong domestic demand for specialty and chronic illness drugs, while recent launches in the chronic segment have further accelerated performance.
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Source: Moneycontrol
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