Q1 2025 Marksans Pharma Ltd Earnings Call Transcript
Key Points
- Marksans Pharma Ltd (BOM:524404) reported an 18.1% increase in operating revenue for Q1 FY25, reaching INR590.6 crore.
- The US and North America markets saw a significant 29.8% year-on-year growth, contributing INR251 crore.
- Gross margin expanded by 432 basis points year-on-year and 386 basis points quarter-on-quarter, driven by reduced raw material pricing and favorable product mix.
- The company remains debt-free with a total of INR691 crore in cash as of June 30, 2024.
- Marksans Pharma Ltd (BOM:524404) has successfully commenced product supplies from its newly acquired manufacturing facility, expecting substantial revenue contribution in upcoming quarters.
- The company continues to face elevated freight costs due to ongoing global crises, container shortages, and port concessions.
- The UK and EU formulation markets, while growing, have shown a slowdown in growth rates from 20%-22% to 12% year-on-year.
- Capacity utilization at the newly acquired facility is currently at 25%, indicating underutilization.
- The company faces potential cost increases if API prices rise, particularly those originating from China.
- Freight costs have increased significantly, impacting overall profitability despite operational efficiencies.
Ladies and gentlemen, good day, and welcome to the Marksans Pharma Q1 FY25 earnings conference call hosted by DAM Capital Advisors Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Nitin Agarwal from DAM Capital Advisors. Thank you. And over to you sir.
Hi. Good afternoon, everyone, and a very warm welcome to Marksans Pharma Q1 FY25 earnings call hosted by DAM Capital Advisors Limited. On the call today, we have representing Marksans Pharma management, Mr. Mark Saldanha Founder, Chairman and Managing Director; and Mr. Jitendra Sharma, Chief Financial Officer. I will hand over the call to Mark to make the opening comments, and then we'll open the floor for questions. Mark please go ahead.
Thank you Nitin. Welcome everyone and thank you for joining us in our Q1 FY25 earnings conference call. We
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