Did Mankind Pharma's Q4 Net Profit Decline by 10.7%?
Click to start listening
Synopsis
Mankind Pharma's latest report reveals a troubling <b>10.7% decline</b> in Q4 net profit, despite impressive revenue growth. Discover how the company is navigating its expansion into chronic therapies and consumer healthcare while facing challenges in margins and integration costs.
Key Takeaways
- Net profit declined by 10.7% to Rs 420.8 crore.
- Revenue increased by 27.1% to Rs 3,079.4 crore.
- EBITDA margin fell to 22.2% due to integration costs.
- FY25 total revenue reached Rs 12,207 crore.
- Domestic sales were Rs 10,675 crore, exports at Rs 1,532 crore.
Mumbai, May 21 (NationPress) Mankind Pharma announced a 10.7% year-on-year (YoY) dip in net profit, totaling Rs 420.8 crore for the quarter that concluded in March 2025 (Q4 FY25). This marks a decrease from Rs 471.2 crore during the equivalent quarter of the previous fiscal year.
The profit downturn occurred despite the company achieving robust revenue growth and advancing its initiatives in chronic therapies and consumer healthcare.
In the March quarter, Mankind's revenue surged by 27.1%, reaching Rs 3,079.4 crore. This growth was fueled by consistent performance in chronic segments, escalating demand for its consumer healthcare products, and the acquisition of Bharat Serums and Vaccines (BSV), aimed at enhancing its foothold in gynaecology and super-specialty therapies.
While the company recorded a 16.5% rise in EBITDA, totaling Rs 683.2 crore during the quarter, its margins faced a decline.
The EBITDA margin fell to 22.2%, down from 24.2% a year prior. This margin contraction was primarily attributed to integration expenses and persistent regulatory hurdles in the acute therapy segment.
For the entire financial year FY25, Mankind's total revenue reached Rs 12,207 crore, reflecting a 19% increase compared to FY24.
Domestic sales accounted for Rs 10,675 crore, while exports surged by 88%, amounting to Rs 1,532 crore.
The adjusted EBITDA margin for the year was 25.9%.
Mankind Pharma's Vice Chairman and Managing Director, Rajeev Juneja, stated that the fourth quarter showcased ongoing strong performance in chronic therapies, growing momentum in the consumer health sector, and successful integration of BSV.
He characterized FY25 as a pivotal year for the company, establishing a foundation for long-term sustainable growth.
Mankind also maintained its status as the leading pharmaceutical company in India by prescription count for the eighth consecutive year.
Its consumer products, including Manforce, Gas-O-Fast, and HealthOK, experienced double-digit growth.
The company's shares closed slightly lower at Rs 2,533.05 on the Bombay Stock Exchange (BSE), reflecting a 0.69% decrease.
Point of View
It is evident that while Mankind Pharma is grappling with a decline in net profit, the underlying growth in revenues and strategic expansions indicate a resilient approach. The pharmaceutical industry remains competitive, and Mankind's ability to adapt will be crucial in the coming years.
NationPress
01/06/2025
Frequently Asked Questions
What factors contributed to Mankind Pharma's profit decline?
Mankind Pharma's profit decline was primarily due to integration costs related to the acquisition of Bharat Serums and Vaccines, along with ongoing regulatory challenges in the acute therapy segment.
How did Mankind Pharma's revenue perform in Q4 FY25?
In Q4 FY25, Mankind Pharma reported a remarkable 27.1% increase in revenue, totaling Rs 3,079.4 crore, driven by growth in chronic therapies and consumer healthcare.
What is Mankind Pharma's outlook for FY25?
Mankind Pharma's management described FY25 as a transformative year, focusing on long-term sustainable growth and a strong performance in chronic therapies and consumer health.
How did Mankind Pharma perform in the domestic and export markets?
For FY25, Mankind's domestic sales reached Rs 10,675 crore, while exports skyrocketed by 88%, totaling Rs 1,532 crore.
What consumer brands contributed to Mankind's growth?
Mankind's consumer brands, such as Manforce, Gas-O-Fast, and HealthOK, experienced double-digit growth, significantly contributing to the company's revenue.
