Marksans Pharma stock zooms 16% to hit record high on strong Q1 results

The US & North America Formulation biz reported growth of 29.8% YoY in Q1FY25, on account of incremental revenue from new product launches, and increase in the share of existing customers.

Shares of Marksans Pharma hit a record high of Rs 217, as they surged 16 per cent on the BSE in Wednesday’s intra-day trade amid heavy volumes after the company reported strong earnings for the June 2024 quarter (Q1FY25).

At 01:49 pm; the stock was trading 15 per cent higher at Rs 216.35, as compared to 0.24 per cent rise in the BSE Sensex. The average trading volumes at the counter jumped over three-fold. A combined 16 million shares changed hands on the NSE and BSE.

The pharmaceutical company posted 18 per cent year-on-year (YoY) increase in revenue at Rs 590.60 crore and 26 per cent YoY increase in earnings before interest, tax, depreciation and amortization (EBITDA) at Rs 128.4 crore. EBITDA margin improved to 21.7 per cent from 20.4 per cent in Q1FY24. Profit after tax jumped 26.5 per cent YoY at Rs 89.1 crore.

 

The US & North America Formulation business reported growth of 29.8 per cent YoY to Rs 250.90 crore in Q1FY25, on account of incremental revenue from new product launches, and increase in the share of existing customers. The company said 32 products are in the pipeline, of which 20 are oral solids and 12 are ointments and creams. Within oral solids, 4 are Softgels.

The management said the growth during the quarter was supported by increase in share from existing customers and new launches. The company experienced favorable raw material prices, however, surge in freight costs continue.

The shipments from the new facility have commenced to the company’s key markets, and with that the management remains optimistic for a stronger performance in the coming quarters, and journey towards achieving the next revenue goal of Rs 3,000 crore over the next two years.

Marksans Pharma is engaged in research, manufacturing & marketing of generic pharmaceutical formulation in the global markets. The company's manufacturing facilities are approved by several leading regulatory agencies including the USFDA, UKMHRA and Australian TGA. The company's robust product portfolio spreads over major therapeutic segments of CVS, CNS, Antidiabetic, Pain Management, Gastroenterological and Anti-allergies. The company is marketing these products globally.