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%.

• 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, showing strong growth potential.

• 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.

• Gross margin improved to 71.6% in Q2 FY25, driven by price increases and favorable sales mix.

• Diluted EPS rose to INR 16.3 in Q2 FY25.

• Cash flow from operations in H1 FY25 was INR 1,139 crore.

• Net cash position as of 30 September 2024 was INR 1,366 crore.

Outlook and guidance

• Double-digit revenue growth expected to continue, with BSV business expected to deliver 15%+ growth and improving EBITDA margins.

• OTC business guided for double-digit growth and 18%-20% EBITDA margin.

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

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