India's Mankind Pharma misses Q1 profit expectations on higher costs

BENGALURU (Reuters) - India's Mankind Pharma posted first-quarter profit below expectations on Wednesday, as higher costs offset strong demand for its drugs.

The company, which makes Manforce condoms and Prega News pregnancy kits, said its consolidated net profit rose 10% to 5.36 billion rupees ($64 million) for the quarter ended June 30, missing analysts' average estimates of 5.77 billion rupees, as per LSEG data.

Revenue from operations rose about 12% to 28.93 billion rupees, but expenses rose 15.5%.

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KEY CONTEXT

Mankind Pharma's June quarter profit was hurt by rising costs, mainly employee-related expenses, even as Indian drugmakers have been benefiting from strong domestic demand for their specialty drugs.

The company, which makes anti-infectives and drugs for treating respiratory illnesses, also said that growth was partially impacted due to a delay in the flu season.

PEER COMPARISON

Estimates (next 12 Analysts' sentiment

months)

RIC PE EV/EBI Revenue Profit Mean # of Stock to Div

TDA growth (%) growth (%) rating* analysts price yield

target** (%)

Mankind Pharma 36.62 26.95 12.55 17.74 Buy 13 0.96 NULL

Torrent 46.87 25.91 12.81 25.39 Buy 26 1.08 0.92

Pharmaceuticals

Glenmark 28.27 15.22 14.90 NULL Buy 11 1.27 0.18

Pharmaceuticals

Sun Pharmaceutical 33.34 24.51 10.24 10.91 Buy 30 1.00 0.85

Industries

* Mean of analysts' ratings standardised to a scale of Strong Buy, Buy, Hold, Sell, and Strong Sell

** Ratio of the stock's last close to analysts' mean price target; a ratio above 1 means the stock is trading above the PT

APRIL TO JUNE STOCK PERFORMANCE

-- All data from LSEG

-- $1 = 83.7234 Indian rupees

(Reporting by Kashish Tandon in Bengaluru)