Marksans Pharma (MARKSANS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 revenue grew 20.8% year-on-year to ₹641.9 crores, led by strong US performance, with Australia and New Zealand also showing robust growth; gross margin expanded by 732 bps to 59.7%.

• EBITDA reached an all-time high of ₹135.7 crores, up 19.1% year-on-year, and PAT increased to ₹97.8 crores.

• The Teva Pharma facility ramped up, contributing ₹100 crores in Q2 revenue at 40-45% utilization.

• Growth was supported by favorable raw material prices, improved product mix, and increased market share.

• Unaudited consolidated and standalone financial results for Q2 and H1 FY25 were approved with an unmodified conclusion from auditors.

Financial highlights

• Q2 FY25 operating revenue was ₹641.9 crores (up 20.8% YoY); H1 FY25 revenue reached ₹1,232.5 crores (up 19.5% YoY).

• Gross profit for Q2 was ₹383.5 crores (up 37.7% YoY); gross margin at 59.7%.

• EBITDA for Q2 was ₹135.7 crores (up 19.1% YoY); EBITDA margin at 21.1%.

• PAT for Q2 was ₹97.8 crores (up 16.6% YoY); EPS at ₹2.1.

• Consolidated cash and cash equivalents as of September 30, 2024, stood at ₹657 crores.

Outlook and guidance

• Q3 and Q4 are expected to be stronger, with U.K. performance improving due to seasonality and new launches.

• Targeting ₹3,000 crores in revenue within the next two years, with EBITDA margin expected to remain stable around 22%.

• U.K. is expected to become a top-three market in the next two to three years, with significant new product launches planned.