Mankind share price dips more than 1%- Analysts expect domestic growth to bounce back after some softness seen in Q2

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Mankind Pharma Ltd dipped more than 1% in the intraday trades on Friday. While some softness in the domestic growth visible reflected in the September quarter performance declared a few days back has been a cause of concern. Analysts expect the growth to improve moving forward.

Mankind Pharma felt the impact of softness in acute segment sales during the September quarter that pulled down the domestic growth even as overall performance was lifted by continued traction in the Chronic portfolio, some price hikes and higher exports as per analysts. Mankind Pharma’s revenue from Operations at ₹2,708 crore had grown 12% year-on-year. Its Domestic revenue at ₹2,529 crore grew 7% YoY.

It was the faster pace of growth in export revenues that at ₹179 crore were up 159% YoY, that supported overall numbers. Also Read- Gold prices to get support as central banks maintain historic buying in Q3: World Gold Council As delayed onset of the acute season was attributed as reason for Soft Q2 domestic growth by analysts, however, during the quarter, contribution from the chronic portfolio improved to 34% as against 32% YoY, with Cardiac and Anti-diabetic growing at double-digit growth rates, as per analysts at Antique Stock Broking. The higher exports income supported Ebitda growth that at ₹686 crore, grew 15% YoY with margin of 25% .

Net profit at ₹511 crore, were up by 21% YoY with margin of 19% It is the pick up in the domestic sales that will be watched for eagerly as we move ahead in the second half. Most analysts expect the domestic growth momentum catching pace Analysts at Kotak Institutional Equities said that Mankind’s 2QFY24 was marred by muted domestic growth, particularly in OTC (over the counter selling products). They build in