(Reuters) -Indian drugmaker Mankind Pharma reported a lower first-quarter profit on Thursday, as mounting expenses outpaced strong domestic demand, particularly for drugs treating long-term illnesses.
The company, which makes ‘Gas-O-Fast’ antacid tablets and ‘Manforce’ condoms, reported an 18% drop in its consolidated net profit to 4.38 billion rupees ($50 million) for the quarter ended June 30.
Overall revenue climbed 24.5% to 35.70 billion rupees, but was overshadowed by a 35% jump in total expenses, leading to a decline in profit.
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KEY CONTEXT
The Indian pharmaceuticals market grew 6% during the quarter, led by a 10% growth in the chronic segment, according to IQVIA data.
This benefitted Mankind Pharma and its peer Torrent Pharma, which derive most of their sales from drugs that treat long-term conditions such as diabetes and hypertension.
Earlier this week, Torrent Pharma reported a higher June quarter profit, driven by demand for drugs used to treat long-term conditions.
PEER COMPARISON
Estimates (next 12 Analysts’ sentiment
months)
RIC PE EV/EBITD Revenue Profit Mean rating* # of analysts Stock to price target**
A growth growth
(%) (%)
Mankind Pharma Ltd 46.66 27.87 18.00 13.98 Buy 15 0.96
J B Chemicals and 31.99 20.99 12.41 18.95 Buy 12 0.87
Pharmaceuticals Ltd
Torrent 46.35 27.76 12.48 25.42 Buy 29 0.99
Pharmaceuticals Ltd
Glenmark 32.30 19.29 12.66 27.16 Buy 9 0.99
Pharmaceuticals 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
APRIL TO JUNE STOCK PERFORMANCE
— All data from LSEG
— $1 = 87.5890 Indian rupees
(Reporting by Kashish Tandon in Bengaluru; Editing by Sonia Cheema)
