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 and increased market share, with Australia/NZ also showing robust growth; U.K. and Europe were softer due to seasonality but are expected to rebound in H2.

• Gross margin expanded by 732 bps year-on-year to 59.7% due to favorable raw material prices and improved product mix.

• EBITDA reached an all-time high of ₹135.7 crores in Q2 FY25, up 19.1% year-on-year; PAT rose to ₹97.8 crores.

• Growth was supported by new product launches, market authorizations, and the Teva Pharma facility ramp-up, which contributed 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, up 8.7% quarter-on-quarter); H1 FY25: ₹1,232.5 crores (up 19.5% year-on-year).

• Gross profit for Q2 was ₹383.5 crores (up 37.7% year-on-year); gross margin: 59.7%.

• Q2 EBITDA was ₹135.7 crores (up 19.1% year-on-year); EBITDA margin: 21.1%. PAT was ₹97.8 crores; EPS for the quarter was ₹2.1.

• H1 FY25 EBITDA was ₹264.1 crores (up 22.3% year-on-year); PAT was ₹186.8 crores (up 21.1%).

• Cash from operations in H1 FY25 was ₹77.1 crores; company remains debt-free with a cash balance of ₹657 crores as of 30 September 2024.

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 and new launches.

• 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.