Morepen Laboratories reports net sales revenue of Rs 196.60 crore in Q2’FY 2019-20

Morepen Laboratories has reported a net sales revenue (standalone) of Rs 196.60 crore in Q2’FY 2019-20, registering a growth of 23 per cent vis-a-vis net sales revenue of Rs 159.73 crore in Q2 FY 2018-19. The company’s EBIDTA in Q2 FY 2019-20 increased by seven per cent at Rs 17.71 crore and cash profit increased by 6.4 per cent at Rs 17.32 crore as against Rs 16.59 crore and Rs 16.28 crore, respectively, in the corresponding quarter of the previous fiscal.

The net profit before tax (standalone) for Q2 FY 2019-20 stood at Rs 9.69 crore, registering a rise of 36.4 per cent. However, as aforesaid, on account of the one-time hit of Rs 5.15 crores taken by the company during the quarter by writing off its MAT credit entitlement, the net profit after tax (PAT) decreased by 38 per cent at Rs 4.54 crore compared to Rs 7.29 crores in the corresponding quarter of the previous fiscal.

API exports grew by 43 per cent at Rs 92.48 crore in Q2 FY 2019-20 with Montelukast registering 112 per cent growth at Rs 21.08 crore, Atorvastatin 33 per cent growth at Rs 19.96 crore and New Molecules registering 63 percent growth at Rs 4.24 crore vis-a-vis the corresponding quarter of the previous fiscal.

The bulk drugs (API) segment contributed around 60 per cent to the company’s total turnover in H1 FY 2019-20. The company’s expanding export reach assisted in achieving a higher topline in first half of FY 2019-20. API’s export sales registered a growth of 46 per cent at Rs 172 crore in the first half under consideration. Export sales for Montelukast Sodium rose by 156 percent at Rs 46.30 crore and that of Atorvastatin Calcium by 43 percent at Rs 36.25 crore in H1 FY 2019-20 vis-a-vis the corresponding period of the previous fiscal. New molecules registered 159 per cent growth at Rs 10.20 crore.

Sharing the above-mentioned information, Sushil Suri, Chairman and Managing Director, Morepen Laboratories, said, “All our focus is currently on the growth strategy for next five years. In line with this objective, the company is expanding its reach further into export markets and has also widened its offered portfolio of APIs by adding three new APIs in cardiac, diabetes and liver segments to it. All these news APIs have been developed by the company’s in-house R&D team. This apart, the domestic OTC health basket is being strengthened further with many new products in the nutritional and preventive healthcare segments.”

Major API exports in the first half were done to APAC (Asia Pacific) markets accounting for around 54 per cent of the total API exports, followed by the US and European markets (around 39 per cent) and other semi-regulated markets (around seven per cent). While APAC business grew by 59 per cent, USA business registered a growth of 33 per cent, European business (27 per cent) and business from other semi-regulated markets (52 per cent).

The company has launched three new APIs – Vildagliptin (diabetes segment), Rivaroxaban (cardic segment) and Ursodeoxycholic Acid (liver ailments). The three drugs will currently be sold in India and patent-free markets worldwide. The Drug Master File for regulatory markets will be filed within the next 12 months.

Morepen Labs’ pharma division commenced commercial sales of its probiotics in India during Q1 FY 2019-20. The company has made steady progress in this business during Q2 FY 2019-20 in the domestic market. Recently, it tied up with Vesale Pharma, Belgium to launch latter’s complete range of probiotics in the Indian market.