India Ratings & Research (Ind-Ra) has upgraded Marksans Pharma (MPL) long-term issuer rating to 'A-' from 'BBB-'. The outlook is stable.

The company's consolidated revenue grew 43.7% yoy to Rs 6,300 million in FY14 (year end March). Revenue increased 49.5% yoy in FY14 in the contract research and manufacturing services (CRAMS) segment due to increased off-take by international pharmaceutical clients. In semi-regulated markets, MPL commercialised 44 approved Intellectual property (IP) products. In the US regulated markets, revenue grew 81% yoy due to incremental sales of already commercialised ANDAs.

The company's overseas subsidiaries grew in line with Ind-Ra's expectations in FY14 through the addition of solid dosage forms to the existing product portfolio and commercialisation of newly approved products. EBITDA margins improved 300bp to 18.1% in FY14, supported by a better product mix from new product approvals and a lower cost of manufacturing in India for global supply. Profit after tax grew 56.7% yoy to Rs 719.1 million.

Ind-Ra believes that the momentum in the revenue and profits will be maintained over the next three years, supported by additional six ANDA filings in FY14 and an established product pipeline.

Shares of the company declined Rs 0.5, or 1.59%, to settle at Rs 30.85 at the BSE (Friday).