Shares of Mankind Pharma plunged nearly 6 percent on January 24, weighed down by a fall in the company's October-December net profit. The company's bottomline dropped over 16 percent on year in Q3 to Rs 385 crore, dented by a sharp rise in expenses.
The drugmaker's Q3 net profit was also impacted by the $1.6 billion acquisition of Bharat Serums and Vaccines (BSV), which came into effect from October.
At 09.51 am, shares of Mankind Pharma were trading at Rs 2,515.25 on the NSE.
Revenue rose 24 percent on year to Rs 3,230 crore in Q3, driven by an increase in market share in the domestic market on account of BSV acquisition aided by leadership in gynae therapy.
Meanwhile, the drugmaker's EBITDA margin swelled up by 240 basis points on year to 25.8 percent, led by an improved mix.
'We achieved a healthy revenue growth and EBITDA margin, driven by continued outperformance in chronic, strong recovery in over-the-counter segment and consolidation of BSV," Rajeev Juneja, Vice Chairman & Managing Director of Mankind Pharma said in an exchange filing.
Total expenses rose 33 percent year-on-year as finance costs jumped to Rs 221 crore from Rs 9.2 crore and employee-related costs expanded 25 percent.
Indian drugmakers like Mankind Pharma have seen robust growth, fueled by strong domestic demand for specialty and chronic illness drugs. Recent launches in the chronic segment have further accelerated their performance in recent quarters.
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