MARKSANS PHARMA LLTD - Q1 FY 21 RESULTS REVIEW

MARKSANS PHARMA

Q1 FY 21 RESULTS REVIEW

 

Marksans Pharma Limited is engaged in Research, Manufacturing & Marketing of generic pharmaceutical formulation in the global markets.

Its manufacturing facilities are approved by several leading regulatory agencies including USFDA, UKMHRA and Australian TGA. Its robust product portfolio spreads over major therapeutic segments of CVS, CNS, Antidiabetic, Pain Management, Gastroenterological and Anti-allergies.

The company is marketing these products globally.

Management

    Mark Saldanha  :  Chairman & Managing Director

    Sandra Saldanha  :      Whole Time Director

    Varddhman Vikramaditya Jain :  Whole Time Director

RESULTS

Marksans Pharma (in Rs. Cr.)	Jun '20	Mar '20	Jun '19	YOY	QOQ
Net Sales	331	335	245	35.15	-1.25
N P T	49.37	42.7	22.5	119.6	15.5
Equity	40.93	40.93	40.93	0	0
Basic EPS	1.2	1	0.52	130.77	20
MP	43.65
PE	9.09
VOLUMES	8,425,143
52 Wk L/H	9.9	43.65

 

Historical Prices

                     1YR BEF Current Price: %Gain / Loss

Open Price    17.00     43.65     156.76

                     2YR BEF

Open Price    29.25     43.65     49.23

                     3 YR BEF

Open Price    41.45     43.65     5.31

                     3 M BEF

Open Price    19.75     43.65     121.01

Share Holding Pattern in (%)

Standalone	March 2020	December 2019	June 2019	March 2019
Promoters	48.25	48.25	48.25	48.25
Pledged	0	0	0	0
FII/FPI	2.48	2.38	2.66	2.72
Total DII	7.79	6.36	7.57	7.82
Fin.Insts	0.64	0.39	0.29	0.4
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	7.15	5.97	7.28	7.42
Others	41.48	43.01	41.52	41.21
Total	100	100	100	100

 

SWOT ANALYSIS

STRENGTHS

• high TTM EPS Growth
• High Return on Equity (ROE) and EPS Growth
• Return on equity (ROE) improving since last 2 year
• ROA improving since last 2 year
• Growth in Net Profit with increasing Profit Margin (QoQ) AND YOY
• Company with Low Debt
• Increasing profits every quarter for the past 4 quarters
• Increasing Revenue every quarter for the past 3 quarters
• Annual Net Profits improving for last 2 years
• Book Value per share Improving for last 2 years
• Company with Zero Promoter Pledge
• FII / FPI or Institutions increasing their shareholding
• Stock gained more than 20% in one month
• Strong PRICE Momentum: Price above short, medium and long term moving averages

 

Steep Upward curve from March 20 only

Valuation

        Market Cap (Rs Cr.)          1,786.65

        P/E                                   46.94

        Book Value (Rs)                      12.35

        Dividend (%)                           10.00

        Industry P/E                     34.85

        EPS (TTM)                                 0.93

        P/C                                   36.07

        Price/Book                                  3.53

        Dividend Yield.(%)                     0.23

        Face Value (RS)`                        1.00

        Deliverables (%)                66.79

PRESS RELEASE

Consolidated Q1 FY21 (Y-o-Y)

=" Total Revenue was Rs. 331.3 Cr as compared to Rs. 247.2 Cr in Q1 FY20, an increase of 34.0%

= EBITDA was Rs. 70.2Cr. as compared to Rs. 34.6 Cr. in Q1 FY20, an increase of 102.9%

=" EBITDA Margin stood at 21.2% for Q1 FY21 as against 14.0% in Q1 FY20

=" PAT stood at Rs. 49.4 Cr. as compared to Rs. 22.5 Cr. in Q1 FY20, a growth of 119.6%

Commenting on the performance Mark Saldanha, Managing Director of the Company said “I am happy to state that we have achieved another quarter of robust performance, wherein we achieved our highest ever EBITDA of Rs.70.2 crores. This was due to all round growth across geographies. | wish to place on record my gratitude to our employees who have tirelessly worked despite the operational challenges faced from the pandemic. We remain cautiously confident of delivering such superior performance going forward.”

 

Business Highlights

=" Company achieved revenue of Rs. 144.2 cr. from Europe, UK: Formulation business in Q1IFY21 as compared to Rs. 100.9 cr. achieved during last year same period registering a growth of 43.0%

=» US & North America Formulation business reported growth of 29.0% to  Rs 133.6 cr. in QIFY21

= Australia & NZ Formulation business revenue was at Rs. 34.1 cr. in QIFY21, registering growth of 10.8% YoY

= Rest of World Formulation business was Rs. 19.4cr. in QIFY21

 

Business Performance

Revenue by Market:

YoY Te                 Q1IFY21        Q1FY20 YOY% Q4FY20 QOQ%

Europe, UK —

Formulations        144.2            100.9     43.0% 149.1 -3.3%  

US & North America —

Formulations        133.6       103.6          29.0% 126.5 5.6%

Australia & NZ —

Formulations               34.1       30.8       10.8% 47.5 -28.2%  

Rest of World (ROW) 19.4         12.0 62.2% 12.3 57.9%

Consolidated Revenue

from operations          331.3     247.2     34.0% 335.4 -1.2%

 

MARKSANS PHARMA - Q4 FY 20 RESULTS REVIEW

MARKSANS PHARMA

Q4 FY 20 RESULTS REVIEW

Company Profile

"The essence of our culture is built on meeting global standards in every aspect of our business." Says Mark Saldanha, Chairman and Managing Director, 

Marksans Pharma, is actively engaged in R&D and offer CRAMS to global pharmaceutical companies.

Its key focus areas lie in the OTC & prescription drugs that have wide-ranging applications across fields like Oncology, Gastroenterology, Antidiabetic, Antibiotics, Cardiovascular, Pain Management, Gynaecology, among others.

Its Strength

It has world-class manufacturing facilities by leveraging state-of-the-art technology, incorporating best practices and adhering to stringent regulatory compliances. Its plants are approved by US FDA, UK MHRA, Australian TGA and other foreign health authorities.

Its R&D capabilities include dossier development, chemical synthesis, process optimization, formulation development, analytical development and conducting stability studies.

The company has achieved global recognition within a very short span of time and has major global expansion plans for the near future.

Its Focus Markets

special focus towards exports markets like US, Canada, Europe, and Australia. It is now expanding its focus towards emerging markets where it has over 350+ approved products and 200+ products pending approvals.

Formulation manufacturing plant at Verna, Goa, This plant is US FDA approved and has approvals from esteemed organizations such as US FDA, UK MHRA, Australian TGA. 

We also have a WHO GMP certificate. This factory has the largest Soft gel manufacturing facility in India. This is a 100% EOU.

To gain a foothold in the Australasia region it acquired Nova Pharmaceuticals Australasia Pty Ltd.

In Europe, it acquired Bell, Sons & Co (Druggists) Ltd. a UK MHRA approved formulation manufacturing and marketing company exporting liquid, ointment and powder to 50 countries globally. 

Further, in order to build capabilities across the entire value chain, it acquired Relonchem Ltd., which markets and distributes high-end prescription products in UK.

MARCH 20 INVESTOR PRESENTATION

Revenue for the yea r expanded by ~13% and EBITDA by~41%. We also received EIR from the USFDA for TimeCap Laboratories located at Farmingdale, NewYork, USA. This positions it favorably to expand its reach in US market.

On the financial front we became a zero-debt company with cash of Rs94crore at the end of this fiscal. The outlook for FY21 looks positive and we expect the growth momentum to continue.”

EBITDA MARGIN  16.97% (13.61%)

NET PROFIT MARGIN 10.64%(8.01%)

ROCE : 24.5% (19.96%)

ROE L18.6% (14.55%)

KEY HIGH LIGHTS :FY 20

Almost 96% of company's total revenue came from regulated markets of US, Europe, Australia and New Zealand

•Formulation business from Europe, UK was Rs. 510.0 cr. this fiscal as compared to Rs. 413.0 cr. achieved during same period last year registering a growth of 23.5% 

•US & North America reported growth of 6.1% to Rs 436.4 cr. in FY20

•Australia & NZ revenue was at Rs. 140.7 cr. in FY20, registering growth of 17.3% YoY

Management

    Mark Saldanha        Chairman & Managing Director

    Sandra Saldanha     Whole Time Director

    Varddhman Vikramaditya Jain      Whole Time Director

RESULTS

Marksans Pharma (in Rs. Cr.)			Mar '20	Dec '19	Sep '19	Jun '19	Mar '19	YOY		QOQ
Net Sales			335.35	287.65	256.4	245.03	247.41	35.54		16.58	SALES GROWTH GRADUAL
Raw Materials			145.41	75.48	79.85	70.6	72.13	101.59		92.65	HIGHER THAN SALES GROWTH
Purchase of Traded Goods			6.72	53.13	42.06	18.69	45.23	-85.14		-87.35	ERRATIC
Increase/Decrease in Stocks			-4.31	11.54	10.74	34.98	5.4	-179.81		-137.35	INSIGNIFICANT
Employees Cost			46.18	40.46	40.63	41.15	42.8	7.9		14.14	STEADY
Depreciation			9.63	7.33	4.98	4.73	6.27	53.59		31.38	STEADY
Other Expenses			72.16	59.77	49.55	47.19	66.2	9		20.73	STEADY
P/L Before Other Inc., Int., Excpt. Items & Tax			59.57	39.96	28.59	27.69	9.38	535.07		49.07	SUPERB GROWTH
Other Income			0.03	0.03	7.88	2.18	9.73	-99.69		0	NEGLIGIBLE
P/L Before Int., Excpt. Items & Tax			59.6	39.98	36.47	29.86	19.11	211.88		49.07	SUPERB GROWTH
Interest			2.04	1.65	2.81	2.25	2.44	-16.39		23.64	STEADY
P B T			57.56	38.34	33.66	27.61	16.68	245.08		50.13	SUPERB GROWTH
Tax			14.82	8.78	7.69	5.13	6.82	117.3		68.79	GROWING
N P T			42.74	29.56	25.97	22.48	9.85	333.91		44.59	EXCELLENT
Equity Share Capital			40.93	40.93	40.93	40.93	40.93	0		0	SAME
Basic EPS			1	0.71	0.63	0.52	0.21	376.19		40.85	SUPERB GROWTH
Diluted EPS			1	0.71	0.63	0.52	0.21	376.19		40.85
MP			34.05
PE			8.5125
08.06.2020
52 Wk L/H			9.9	39.15
UPTO MARCH 3RD, PRICE WAS AROUND RS.10 ONLY. THEN JUMPED.
Valuation
Market Cap (Rs Cr.)		1,393.71
P/E		36.61
Book Value (Rs)		12.35
Dividend (%)		10
Market Lot		1
Industry P/E		31.08
EPS (TTM)		0.93
P/C		28.14
Price/Book		2.76
Dividend Yield.(%)		0.29
Face Value (RS)		1
Deliverables (%)		43.42
Dividend Summary
For the year ending March 2020 Marksans Pharma has declared an equity dividend of 10.00% amounting to Rs 0.1 per share. At the current share price of Rs 34.05 this results in a dividend yield of 0.29%.
The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Share Holding Pattern in (%)

Standalone	March 2020	December 2019	June 2019	March 2019
Promoters	48.25	48.25	48.25	48.25
Pledged	0	0	0	0
FII/FPI	2.48	2.38	2.66	2.72
Total DII	7.79	6.36	7.57	7.82
Fin.Insts	0.64	0.39	0.29	0.4
Insurance Co	0	0	0	0
MF	0	0	0	0
Others DIIs	7.15	5.97	7.28	7.42
Others	41.48	43.01	41.52	41.21
Total	100	100	100	100