Marksans Pharma (MARKSANS) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 saw revenue growth of 20.8% year-on-year to ₹641.9 crores, led by strong performance in the U.S., with Australia and New Zealand also showing robust growth; U.K. and Europe were softer due to seasonality but are expected to rebound in H2.

• EBITDA reached an all-time high of ₹135.7 crores, up 19.1% year-on-year, supported by improved product mix, lower raw material prices, and increased market share.

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

• 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 was ₹641.9 crores, up 20.8% year-on-year; U.S. revenue grew 36.8% to ₹304.2 crores, UK/EU up 5.7% to ₹246.7 crores, Australia/NZ up 31.3% to ₹63.6 crores.

• Gross profit for Q2 was ₹383.5 crores, up 37.7% year-on-year; gross margin expanded by 732 bps to 59.7%.

• Q2 EBITDA was ₹135.7 crores (up 19.1%); EBITDA margin at 21.1%. Profit after tax was ₹97.8 crores, up 16.6%. EPS for the quarter was ₹2.1.

• H1 FY25 revenue was ₹1,232.5 crores, up 19.5% year-on-year; gross profit ₹712.4 crores, up 33%; EBITDA ₹264.1 crores, up 22.3%; PAT ₹186.8 crores, up 21.1%.

• Consolidated revenue from operations for Q2 FY25 was ₹6,419.23 million, up from ₹5,312.36 million in Q2 FY24; consolidated net profit for Q2 FY25 stood at ₹977.60 million.

Outlook and guidance

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

• Q3 and Q4 are expected to be stronger, especially with a rebound in the UK market due to seasonality.

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

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