In Wednesday’s trading session, the shares of a company engaged in the business of formulation of pharmaceutical products surged by 15.7 percent to hit a new 52-week high at Rs. 217.4, after reporting financial results for Q1 FY24-25 with a rise in the net profit of 26.5 percent YoY and strong growth guidance.
With a market capitalisation of Rs. 9,804 crores, at 01:46 p.m., the shares of Marksans Pharma Limited were trading in the green at Rs. 216.05, up by 15 percent, as against its previous closing price of Rs. 187.85.
What’s the News:
The fluctuations in the share prices were observed after the company announced the financial results for Q1 FY24-25, through the recent filings with the stock exchanges on Tuesday post-market hours.
For Q1 FY24-25, revenue from operations reached Rs. 590.6 crores, reflecting an 18 percent YoY increase from Rs. 500 crores in Q1 FY23-24 and a 5.5 percent QoQ rise from Rs. 560 crores in Q4 FY23-24.
This revenue growth is supported by new product launches and an increase in the company’s share with existing customers in the key markets.
Additionally, the company’s net profit surged by 26.5 percent YoY to Rs. 89 crores in Q1 FY24-25, compared to Rs. 70.4 crores in Q1 FY23-24, and increased by 14.7 percent QoQ from Rs. 77.6 crores in Q4 FY23-24.
In Q1FY25, the capex incurred was Rs. 31 crores, aligned with its plan to scale up the newly acquired manufacturing unit from Teva Pharma in Goa, a move expected to drive future growth.
As of the June 2024 quarter, the company held a cash balance of Rs. 691 crores, with cash from operations at Rs. 45.3 crores and free cash flow at Rs. 14.3 crores. Research & Development (R&D) expenditure totalled Rs. 12 crores, representing 2 percent of consolidated revenue.
On a year-on-year basis, the Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA grew from Rs. 120 crores in Q1 FY23-24 to Rs. 128.4 crores in Q1 FY24-25, marking a 26 percent growth. This rise in EBITDA contributed to an improvement in net profit.
Marksans Pharma witnessed an EBITDA margin of 21.7 percent in Q1 FY24-25, up from 20.4 percent in the same quarter of the previous year. Similarly, the company’s net profit margin saw a substantial improvement, rising to 14.7 percent from 13.8 percent, over the same period.
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Future growth of Marksans Pharma:
The company has met its revenue target of Rs. 2,000 crores, and achieved its EBITDA margin guidance of 20 percent.
Looking ahead, Marksans Pharma aims to reach Rs. 3,000 crores in revenue within the next two years. The company plans to double its revenue in the US and North America and aims to be among the top 5 private label OTC companies in the region.
Additionally, Marksans Pharma targets positioning itself within the top 3 of the current top 5 Indian pharmaceutical firms in the UK based on revenue.
Stock Performance
The shares of Marksans Pharma Limited have delivered positive returns of nearly 90 percent in one year as well as around 34 percent returns year-to-date.
About the Company:
Marksans Pharma Limited is engaged in the business of research, manufacture, marketing and sale of generic pharmaceutical formulations in the global markets. Its product portfolio spreads over major therapeutic segments of CVS, CNS, antidiabetic, pain management, gastroenterological and anti-allergies.
Written by Shivani Singh
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