Marksans Pharma (MARKSANS) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 saw strong growth with revenue up 18.1% YoY to ₹590.6 crore, driven by increased market share, new product launches, and improved customer penetration, especially in the U.S. and U.K. markets.

• U.S. remains a strategic focus, with expectations for better performance in upcoming quarters despite mixed demand and stable pricing pressure.

• Shipments from a new facility began, supporting optimism for continued strong performance and a revenue goal of ₹3,000 crore in two years.

• Board strengthened with reappointments, including Mr. Varddhman Vikramaditya Jain as Whole-Time Director for three more years.

• Standalone and consolidated unaudited financial results for Q1 FY25 were reviewed and approved by the Board, with auditors expressing an unmodified conclusion.

Financial highlights

• Consolidated revenue from operations for Q1 FY25 was ₹5,906.18 million, up from ₹5,000.33 million in Q1 FY24; operating revenue for Q1 FY25 was INR 590.6 crore, up 18.1% YoY.

• U.S. and North America revenue grew 29.8% YoY to INR 251 crore; U.K. and EU up 11.3% to INR 251.5 crore; Australia/NZ up 12% to INR 65.6 crore.

• Gross profit rose 27.8% YoY to INR 329 crore; gross margin increased by 420 bps to 55.7%.

• EBITDA was INR 128.4 crore, up 26% YoY; EBITDA margin at 21.7%.

• Profit after tax reached INR 89.1 crore, up 26.4% YoY; EPS at INR 2.

Outlook and guidance

• Management expects continued growth, with the new facility contributing more significantly from Q3 onwards.

• Targeting INR 3,000 crore revenue within two years, supported by robust order book, new launches, and expanding customer base.

• Plans to double US revenue and become a top 3 Indian pharma firm in the UK.

• Gross margin improvement is seen as sustainable barring major geopolitical or freight disruptions.