Marksans Pharma stock skyrockets 13% on strong all-round Q1 earnings show

The stellar earnings also sparked a spike in volumes in the counter as 87 lakh shares of Marksans Pharma changed hands on the exchanges so far

Shares of Marksans Pharma skyrocketed 13 percent in early trade on August 14 as investors rejoiced company's strong all-rounded earnings performance in the April-June quarter.

At 11.54 am, shares of Marksans Pharma were trading at Rs 2o2.18 on the NSE, off its day's high of Rs 213. The stellar earnings also sparked a spike in volumes in the counter as 87 lakh shares changed hands on the exchanges so far, significantly higher than the one-month daily traded average of 23 lakh shares.

Aided by improved operational performance, the drugmaker's net profit for Q1FY25 rose over 26 percent to Rs 89.1 crore, up from Rs 70.4 crore in the year-ago period.

Revenue also grew 18 percent year-on-year to Rs 590.6 crore, driven by new launches and
increase in share with existing customers in key markets. Along with that, improved gross margin and consistent efforts towards operational efficiency helped Marksans Pharma expand its EBITDA margin to 21.7 percent in the quarter gone by. The company had reported an EBITDA margin to 20.4 percent in the same quarter a year ago.

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On a segmental basis, the US and North America delivered the strongest growth among other markets, at 30 percent, followed by sales in Australia and New Zealand, which were up 13 percent on year. The company's sales in UK and Europe rose 11 percent on-year while that in rest of the world markets were up just 2 percent.

For the US and North American market, Marksans Pharma sees mixed demand conditions for
different products. "However we anticipate better traction of growth for coming quarters as
cough and cold and other seasons start towards second half of the year, uptick from new launches and the shipments from new facility are in transit," the drugmaker stated.

For other markets as well, Marksans Pharma anticipates better growth in the coming quarters, aided by expectations of a stable demand situation and new product launches.

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