Mankind Pharma Shares Gain After Handy Beat On Q3 Profit Estimates

Shares of condom manufacturer Mankind Pharma were gaining on Thursday after the firm reported a stronger-than-expected increase in third-quarter profit, primarily driven by robust domestic sales, especially in the company's chronic drugs segment.

What Happened: The pharmaceutical company, ranked as the fourth-largest in the country by domestic sales, disclosed that its consolidated profit surged by 60% to ₹454 crore for the October-December quarter. This exceeded analysts' average estimate of ₹429 crore.

Mankind Pharma, known for producing acute and chronic therapeutics, including anti-infectives, anti-diabetics, and respiratory medications, posted a 25% increase in revenue from operations, reaching ₹2,607 crore. This growth was propelled by a 20% rise in its domestic business revenue, totalling ₹2,400 crore, breaking a three-quarter streak of slowing growth since listing.

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More Numbers: The company’s domestic revenue had faced challenges due to factors such as the slowest monsoon since 2018 and increased precautions amid the waning of the COVID-19 pandemic. However, the chronic drugs segment’s share of domestic sales rose to 35%, up from 34% in the year-ago period.

While the revenue from the consumer healthcare business segment, featuring brands like Manforce male condoms and Prega News pregnancy test kits, declined by 4.8% year-on-year to ₹149 crore, the company’s profit margins improved to 17.6% from 14.1% in the previous year.

Price Action: Mankind Pharma shares rose 2.6% to ₹2,047.95 near the start of trade on Thursday.

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