Mankind Pharma posts 30% profit rise on chronic therapies demand

Indian drugmaker bucks sector weakness as domestic revival offsets US headwinds faced by peers

Mankind Pharma (MNKI.NS) reported a sharp rise in quarterly profit on Tuesday, buoyed by robust demand for chronic therapies and consumer healthcare products, as the Indian drugmaker outpaced broader market growth at home even as rivals struggled with deteriorating conditions in the United States.

Net profit from continued operations rose 30 per cent to Rs5.54bn ($57m) for the quarter ended March 31, up from Rs4.25bn a year earlier. Revenue from operations climbed roughly 12 per cent to Rs34.43bn.

Motilal Oswal described Mankind's domestic formulations business as being in "revival mode", noting that the company's 11.5 per cent growth in March outstripped the Indian pharmaceutical market's 10.6 per cent expansion. The brokerage attributed the outperformance to strength in high-value chronic segments, particularly cardiac and anti-diabetes treatments.

Analysts also pointed to improved commercial execution following a reorganisation of Mankind's on-the-ground sales force. The integration of Bharat Serums and Vaccines, acquired in a deal that had initially presented operational difficulties, is now seen as contributing meaningfully to growth.

The results stand in contrast to a difficult quarter for several of Mankind's domestic peers. Cipla (CIPL.NS) last week missed profit expectations after a sharp deterioration in its US business, while Dr Reddy's Laboratories reported an 86 per cent collapse in quarterly earnings, hammered by pricing pressure and intensifying competition in the American generics market.