Mankind Pharma (MANKIND) Q2 24/25 earnings summary

Executive summary

• Successfully acquired 100% stake in Bharat Serums and Vaccines Limited (BSV) for INR 13,768 crores, expanding into high-entry barrier and women's healthcare segments, and strengthening R&D capabilities.

• Q2 FY25 revenue grew 14% year-over-year to INR 3,077 crore, with EBITDA margin at 27.7% and PAT margin at 21.4%, driven by chronic and consumer healthcare segments.

• Chronic segment share rose to 36% in H1 FY25, outperforming IPM chronic growth by 1.3x.

• Consumer healthcare (OTC) business carved out as a wholly owned subsidiary to drive next phase of growth.

• Board approved key corporate actions, including appointment of an independent director to a material subsidiary and alteration of Articles of Association.

Financial highlights

• Q2 FY25 consolidated revenue from operations up 13.6% year-over-year to INR 3,077 crore; EBITDA increased 24.3% to INR 853 crore; PAT grew 28.9% to INR 659 crore; diluted EPS at INR 16.3.

• Gross margin rose to 71.6% from 69.5% in Q2 FY24, driven by price increases, favorable mix, and input cost efficiencies.

• H1 FY25 cash flow from operations at INR 1,139 crore, up 18% year-over-year.

• Net cash position as of 30 Sep 2024: INR 4,255 crore (consolidated), INR 1,366 crore (standalone).

• CapEx for Q2 FY25 was INR 128 crore (4.2% of revenue); H1 FY25 CapEx at INR 125 crore.

Outlook and guidance

• Guidance for double-digit revenue growth and EBITDA margin of 25%-26% for the core business.

• BSV expected to deliver 15%-20% growth with improving margins; international business to sustain 20%+ growth.

• OTC business expected to maintain double-digit growth and 18%-20% EBITDA margin.

• Net debt-to-EBITDA targeted below 2x by FY26, with full debt retirement planned within three years.

• Management expects no material adjustments from ongoing income tax proceedings.