India's Mankind Pharma misses Q3 profit view as expenses jump

Glenmark Pharmaceuticals

23/01/2025 15:27

Jan 23 (Reuters) - India's Mankind Pharma  MNKI.NS  reported a smaller-than-expected third-quarter profit on
Thursday, hurt by a sharp rise in expenses.
    Manforce condom and Prega News pregnancy kit maker reported a consolidated net profit of 3.8 billion rupees ($43.99
million) for the quarter ended Dec. 31. Analysts on average had expected a profit of 4.48 billion rupees, as per data
compiled by LSEG.
    Mankind said the $1.6 billion acquisition of Bharat Serums and Vaccines, effective October, also impacted the quarterly
results, making them not comparable to the year-ago quarter. It had reported a profit of 4.54 billion rupees in the
previous year.
    Revenue rose 24%, in line with analysts' expectations, driven by an increase in market share of its chronic illness
drugs in India to 37.6% from 35.6%.
    Total expenses rose 33% year-on-year as finance costs jumped to 2.21 billion rupees from 92 million rupees, while
employee-related costs expanded 25%.

    For further results highlights, click [Full Story]     
    
    KEY CONTEXT 
    Indian drugmakers such as Mankind Pharma have benefited from strong domestic demand for their specialty drugs and those
used to treat chronic illnesses. New launches in the chronic drug segment have also driven growth in the last few quarters.
    However, analysts at HDFC Securities in a note said that Mankind Pharma's earnings in the quarter could be impacted due
to costs from the acquisition and integration of Bharat Serums and Vaccines.
    Peer Torrent Pharma will report third-quarter results on Friday.
    
    PEER COMPARISION 
                                  Valuation (next 12       Estimates (next 12          Analysts' sentiment         
                                        months)                 months)                                            
                      RIC       PE     EV/EBI  Price/Sa  Revenue     profit      Mean     # of      Stock to       Div
                                       TDA     les       growth      growth      rating   analysts  price target   yield
                                                                                 *                  **             (%)
 Mankind Pharma Ltd   MNKI.NS   42.66  25.29   6.99      21.59       13.48       BUY      15        0.89           NULL
 Torrent              TORP.NS   42.81  24.71   6.81      12.53       29.33       BUY      26        0.89           0.88
 Pharmaceuticals Ltd                                                                                               
 Glenmark             GLEN.NS   24.80  14.58   NULL      11.42       64.85       BUY      10        0.87           0.17
 Pharmaceuticals Ltd                                                                                               
 Sun Pharmaceutical   SUN.NS    33.46  25.02   6.30      10.33       15.89       BUY      32        0.88           0.75
 Industries Ltd                                                                                                    
 * The mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell
** The ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the
PT
 
    OCTOBER TO DECEMBER STOCK PERFORMANCE


($1 = 86.3830 Indian rupees)

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OCTOBER TO DECEMBER STOCK PERFORMANCE    https://tmsnrt.rs/40p5ngx
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 (Reporting by Nishit Navin in Bengaluru; Editing by Vijay Kishore)
 ((Nishit.Navin@thomsonreuters.com;))