(Reuters) -India’s Mankind Pharma reported a fourth straight quarter of profit fall on Thursday, as the government’s sweeping cuts on its goods and services taxes caused supply chain disruptions, weighing on sales volume.
The company, which makes ‘Manforce’ condoms and ‘Gas-O-Fast’ antacid tablets, said consolidated net profit fell nearly 22% to 5.12 billion rupees in the second quarter ended September 30.
Revenue rose 20.8% to 36.97 billion rupees.
KEY CONTEXT:
Mankind’s chronic illness drugs segment continued to do well, with its domestic market share rising 1.9%, led by demand for its anti-diabetic and cardiovascular medication.
The firm and its peer Torrent Pharma derive most of their sales from drugs that treat long-term conditions such as diabetes and hypertension.
However, sales of over-the-counter medication were hurt as distributors delayed purchases ahead of the government’s tax cuts, which came into effect on September 22, its MD Rajeev Sharma said, weighing on overall profit.
Torrent Pharma is expected to report its earnings on November 7.
PEER COMPARISON TABLE:
Valuation (next 12 Estimates Analysts’
months) (next 12 sentiment
months)
RIC PE EV/EBI Price/ Revenue Profit Mean # of
TDA Sales growth growth rating analysts
Mankind Pharma MNKI. 38. 24.05 6.43 15.27 20.31 BUY 16
Ltd NS 43
Torrent TORP. 43. 25.89 8.00 12.12 23.63 BUY 29
Pharmaceuticals NS 23
Ltd
J B Chemicals JBCH. 30. 19.75 5.52 11.50 17.96 BUY 11
and NS 30
Pharmaceuticals
Ltd
Glenmark GLEN. 24. 15.18 NULL 10.55 30.14 BUY 9
Pharmaceuticals NS 28
Ltd
STOCK PERFORMANCE CHART:
(Reporting by Mridula Kumar in Bengaluru; Editing by Janane Venkatraman)
