Marksans net profit zooms on formulation demand

Local drug maker Marksans Pharma reported strong earnings performance for the fiscal fourth quarter as well for full year driven demand for formulations in the global markets, particularly increasing market share in the US & North American region.

The Mumbai-based drug makers overall business grew by 33.9% in constant currency basis in Q4 FY20 as compared to Q4 FY19 led by strong growth across key market of UK, US and Australia.

Total Revenue was Rs 335.4 crore as compared to Rs 257.1 crore in Q4 FY19, an increase of 30.4%.

Earnings before interest, tax, depreciation and adjustments (EBITDA) was Rs 69.2 crore as compared to Rs 25.4 crore in Q4 FY19, an increase of 172.8%.

This translates into an EBITDA Margin of 20.6% for Q4 FY20 as against 9.9% in Q4 FY19.

Net profit stood at Rs 42.7 crore as compared to Rs 9.9 crore in Q4 FY19, a growth of 333.8%.

For the fiscal year FY20, the overall business grew by 15.8% in constant currency as compared to FY19.

Total Revenue was Rs 1,134.5 crore as compared to Rs 1,004.7 crore in FY19, an increase of 12.9%.

Formulation business from Europe, UK was Rs 510.0 crore during FY20 as compared to Rs 413.0 crore achieved during same period last year registering a growth of 23.5%. US & North America reported growth of 6.1% to Rs 436.4 crore while Australia & NZ revenue was at Rs 140.7 crore in FY20, registering growth of 17.3%.

Full year EBITDA was Rs 192.6 crore as compared to Rs 136.8 crore in FY19, a growth of 40.8%. EBITDA Margin stood at 17.0% for FY20 as against 13.6% in FY19. Net profit
at Rs 120.8 crore as compared to Rs 80.4 crore in FY19, an increase of 50.1%.

The company performed extremely well despite of the lockdown due to the COVID pandemic at the end of March. Revenue for the year expanded by 13% and EBITDA by 41%.

It received EIR from the US FDA for Time Cap Laboratories located at Farmingdale, New York, USA. This positions is favourable for the company to expand its reach in US market.

Marksans has became a zero-debt company with cash of Rs 94 crore at the end of this fiscal. The outlook for FY21 looks positive and it expect the growth momentum to continue.

Marksans is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulations. It’s key focus areas lie in OTC and prescription drugs. It also makes tablets (plain, enteric, coated and film coated), hard and soft gelatin capsule, oral liquids and ointments. The manufacturing facilities are accredited by USFDA, UKMHRA and Australian TGA.

Net net the company has put out a strong performance in Q4FY20 and full year FY20 and is expected ro sustain this growth momentum in FY22 also ahead.

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