Morepen reports a turnaround performance in second quarter
New Delhi – November 5, 2015 – Morepen Laboratories Ltd. has reported a steep jump of over 940% in its bottom line backed by an impressive all-round improvement in sales revenue of its various divisions in the second quarter (Q2) ended September 30, 2015.
Morepen’s profit after tax (PAT) in Q2 of financial Year 2015-16 stood at Rs.3.22 crore up from Rs. 31 lakhs in the corresponding quarter of the previous financial year, registering a growth of 940%. The company’s net income from operations rose by 24 per cent in Q2 at Rs. 113.00 crore from Rs.91.18 crore and EBIDTA grew by 55% at Rs. 16.06 crore from Rs. 10.35 crore in the corresponding quarter of the previous fiscal. The cash surplus (EBDA) has also shown a significant rise of 49% at Rs. 12.74 crore (Rs.8.52 Crore).
Speaking on the spectacular turnaround reported by the company in the second quarter, Mr. Sushil Suri, Chairman & Managing Director, Morepen Laboratories Ltd, said, “Morepen has a niche in the API business. Our cost reduction efforts coupled with continuous investments in R&D yielded rich dividends for the company as it attained a strong hold in the international markets, which eventually reflected positively on financial front in the current fiscal.”
A major portion of the growth in Q2 has come from exports business at Rs. 51.55 crore (Rs. 33.92 crore), an increase of 52%. Amongst various business segments, the Active Pharmaceutical Ingredients (API)/ Bulk Drugs segment’s contribution in total sales continued to remain at the top with a revenue of Rs. 69.52 crore in Q2 Fy 2015-16, up by 37 per cent from Rs. 50.59 crore in corresponding quarter of the previous FY. Within the bulk drug’s segment, Atorvastatin’s business stood at Rs. 11.31 crore and Loratadine at Rs. 29.46 crore, registering a growth of 79% and 37% respectively.
The Home Diagnostics business with a sales revenue of Rs. 16.08 crore in Q2 FY 2015-16 (Rs. 13.75 crore) is another big contributor to the upsurge in the overall performance. Blood Glucometers and BP Monitors, used for measuring blood sugar and blood pressure in human body, are the main force driving Home Diagnostics sales of the company in the current fiscal. These high-end devices alone have recorded a sales revenue of Rs. 10.93 Crore in Q2 FY 2015-16. The company’s brands “Gluco One” and “BP One” are amongst the top three brands of the country in their respective categories. The company has high hopes from these business segments in the coming years, given the fact that India is increasingly being considered as the diabetic and cardiac capital of the world.
In the half year ended September 30, 2015, Morepen Laboratories has recorded a net profit of Rs. 5.73 crore and an income from operation of Rs. 216.56 crore, registering a growth of 328% and 19% respectively. EBIDTA during first half rose by 21% at Rs.29.52 crore, cash surplus (EBDA) by 17% at Rs. 24.54 crore, Exports by 28% at Rs. 97.07 crore, Home Diagnostics business by 23% at Rs.30.70 crore and API business by 24 % at Rs. 129.91 crore. The sales revenue of Gluco Monitors and Blood Pressure Monitors in the first half has increased to Rs. 20.35 crore as compared to Rs. 14.23 crore in the first half of previous fiscal.
About Morepen Laboratories Ltd.
Morepen Laboratories Ltd. is a 30-year old pharmaceutical and healthcare products company. The company went public in the year 1993 and is currently listed at both the Bombay Stock Exchange as well as the National Stock Exchange.
Morepen is engaged in the manufacturing and sale of APIs/ Bulk Drugs, Home Diagnostics, Formulations and OTC products. The company’s state-of-the-art manufacturing facility at Baddi (Himachal Pradesh) comprises a scientifically integrated complex of 10 plants, each with a specific product profile. The USFDA approved plant at Masulkhana is for manufacture of Loratadine, an anti-allergy drug – internationally known as Claritin. The large and spread out manufacturing facility at Baddi manufactures latest and much in demand products like Atorvastatin, Montelukast, Rosuvastatin, Sitagliptin and others for regulated markets of USA and also for non-regulated markets across the globe. Morepen markets over 100 branded formulations under six major therapeutic segments in the domestic market. It has WHO GMP facilities for manufacturing of Formulations. The company’s manufacturing facilities are backed by a strong dedicated team of research and development (R&D) professionals who ensure stringent quality standards.
In Home – Diagnostics business, Morepen has a formidable presence in Blood Glucose Monitors and Blood Pressure Monitors, which are imported by the company for sale in the domestic market. The company’s OTC brands are being promoted under its wholly owned subsidiary Dr. Morepen Limited. Dr. Morepen’s famous OTC product line, including Burnol, Lemolate, Sat-Isabgol, FeverX, Pain X and others, has a significant presence in the domestic market.