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 U.S. performance, with Australia/NZ also robust; U.K. and Europe were softer due to seasonality but expected to rebound in H2.

• EBITDA reached ₹135.7 crores, up 19.1% year-on-year, with PAT at ₹97.8 crores, supported by favorable raw material prices, improved product mix, and increased market share.

• Strategic focus remains on expanding business, new product launches, and scaling up the Teva Pharma facility, which contributed approximately INR 100 crores in revenue at 40-45% capacity utilization.

• The company maintains a target of reaching INR 3,000 crores in revenue within the next two years, supported by ongoing investments and operational ramp-up.

• Unaudited consolidated and standalone financial results for the quarter and half year ended September 30, 2024, were approved and reviewed by the Board and auditors, with an unmodified conclusion from the statutory auditors.

Financial highlights

• Q2 FY25 operating revenue: INR 641.9 crores (up 20.8% YoY); U.S. revenue up 36.8% to INR 304.2 crores; UK/EU up 5.7% to INR 246.7 crores; Australia/NZ up 31.3% to INR 63.6 crores.

• Gross profit: INR 383.5 crores, up 37.7% YoY; gross margin expanded by 732 bps to 59.7%.

• EBITDA: INR 135.7 crores, up 19.1% YoY; EBITDA margin at 21.1%.

• Profit after tax: INR 97.8 crores, up 16.6% YoY; EPS at INR 2.1.

• H1 FY25 revenue: INR 1,232.5 crores, up 19.5% YoY; gross margin at 57.8%, up 584 bps; EBITDA at INR 264.1 crores, up 22.3%; PAT at INR 186.8 crores, up 21.1%.

Outlook and guidance

• Expecting stronger Q3 and Q4, particularly in the U.K. as seasonality reverses; U.S. to remain the primary growth driver.

• Targeting INR 3,000 crores revenue within two years; EBITDA margin expected to remain stable around 22%.

• Australia/NZ OTC business aims to reach AUD 100 million over time, with a near-term milestone of AUD 50 million.

• R&D spend to remain around 2% of revenue, focused on U.S., Europe, U.K., and Australia.

• Aims to double US revenue and become a top 5 private label OTC company in North America.